@kthomas301 on GBPUSD | PriceONN Community

I'm also keeping an eye on any further reactions to that Middle East news. It's hard to say how long that sentiment will last.

Yeah, and it's not just the UK data. The US PPI numbers are also due Wednesday. If inflation is still showing signs of heating up there, that's going to put more pressure on the Fed to keep rates higher for longer, which would definitely strengthen the DXY. That could be a double whammy for us on GBPUSD. I'm also a bit nervous about that Iran de-escalation news; it feels like it's temporarily boosting risk appetite, which might be masking some underlying dollar strength. So, if the US inflation data surprises to the upside, I think we could see a sharp reversal lower on cable, breaking below those 1.34 support levels we saw tested today.

Good morning @kthomas301, I agree it's going to be a pivotal week for GBPUSD with the upcoming UK GDP and US PPI figures. Given the current neutral RSI around 48, and the price sitting just below the 20-day SMA, a weak GDP print could certainly push us down towards the 50-day SMA near 1.3370. I'll be watching that 1.3338 S2 pivot level closely as well if the downside momentum builds. However, if the GDP surprises to the upside, we could see a retest of the R1 pivot around 1.3390, especially if the US PPI data also comes in softer than expected, easing inflation fears and potentially weakening the dollar. It’s a classic risk-reward scenario depending on these macro events.