GBP/USD and DAX Present Key Trading Opportunities Amid Risk Shifts

GBP/USD shows potential for directional movement as traders evaluate shifting risk sentiment across global markets. The British pound faces pressure from ongoing uncertainty surrounding UK economic growth prospects, though recent data has shown some resilience in the services sector. Technical indicators suggest the cable is approaching a critical juncture, with key support at 1.2950 and resistance at 1.3050. Meanwhile, Germany's DAX index exhibits notable volatility, reflecting broader European equity market dynamics and concerns over regional economic momentum. The index's performance often correlates with EUR/USD movements, as strong DAX gains typically support euro strength through improved risk appetite. Traders are positioning for potential breakout scenarios in both instruments, with particular attention on upcoming UK GDP revisions and German industrial production figures. The interplay between forex and equity markets suggests increased correlation trading opportunities, especially as central bank policy divergence continues to influence cross-asset flows.