• GBP/USD jumped more than a big figure after Trump canceled a third night of strikes on Iran.
• Friday brings UK GDP with a contraction expected, the first test of a rally the Pound did nothing to earn.
• Next week compresses UK CPI, the Fed and the BoE into 48 hours, with both central banks parked on the same rate.

The British Pound spent most of Thursday doing what everything else did, leaking lower while Washington and Tehran traded fire, then exploding higher when President Trump canceled the evening's planned strikes just after 17:30 GMT and declared a deal all but done. GBP/USD gained more than a full big figure off the lows, and not one pip of it was earned in the UK.

That matters more for Cable than most, because the Pound now has to defend a borrowed rally through one of the heaviest scheduled stretches on the calendar. What the geopolitical whipsaw handed over on Thursday, the data gets to question from Friday morning onward.

Canceled by post, confirmed by no one

The shape of the day was the same across markets. US strikes ran Tuesday and Wednesday, Tehran answered at American bases across the Gulf, and Trump opened Thursday threatening to seize Kharg Island before canceling the night's raids and claiming approval on a meaningful deal at the highest level of Iranian leadership.

Iran has confirmed nothing. Its semiofficial Fars agency first reported that no text had been approved, then floated high odds of approval since Washington accepted Iran's own draft, while Trump talks up a weekend signing in Europe with the Strait of Hormuz reopening on signature. One capital is planning a ceremony; the other is publishing odds.

Washed-out momentum, intact gains

The chart work was done in one impulse. Cable leaked from just below 1.3400 in the London morning into the low 1.3300s by mid-afternoon, then the cancellation candle carved straight back through the range, cleared 1.3400 and stalled short of 1.3450.

The daily chart explains both of those numbers. Thursday's candle closed back above the 200-day Exponential Moving Average (EMA), which sits on the 1.3400 handle, while the rally stalled directly beneath the falling 50-day EMA near 1.3450. That leaves Cable wedged between its two most-watched averages, about as literal as technical tension gets.

Momentum supplies a further wrinkle, because the intraday Stochastic Relative Strength Index (Stoch RSI) has collapsed into oversold territory while price has barely surrendered anything above 1.3400. That reset usually favors the side holding the gains; the headlines decide which way it fires.

Friday's growth check comes first

The first bill lands at 06:00 GMT with monthly Gross Domestic Product (GDP) for April, where consensus expects a -0.1% MoM contraction after 0.3% growth. Industrial Production is seen barely positive, Manufacturing Production is expected to give back part of a strong prior month, and Consumer Inflation Expectations follow from a 3.2% base.

The afternoon belongs to the US side, where the University of Michigan's preliminary June sentiment is expected to improve and the accompanying inflation-expectations readings, last near 4.8% on the one-year horizon, double as a referendum on how much war is baked into American price psychology. With Crude Oil unwinding its premium, those expectation lines are suddenly the most interesting numbers on the page.

Next week, two banks and one number

Wednesday stacks UK Consumer Price Index (CPI) for May, last at 2.8% YoY, against the Federal Reserve (Fed) decision at 18:00 GMT the same evening. No change is expected to the 3.75% policy rate, but the projections are the event: the last set penciled rates ending the year below where they stand today, a promise that hot, war-flavored inflation prints, including Thursday's 6.5% YoY Producer Price Index (PPI), have been eating ever since.

Seventeen hours later, the Bank of England (BoE) answers from the identical 3.75% setting, with fresh UK jobs numbers landing at breakfast and one policymaker already voting for a hike at the last meeting. Two central banks on the same rate, deciding within a day of each other, against an inflation shock that may or may not have just ended by social media post: that is the setup Cable carries its borrowed gains into. UK Retail Sales close the week from a -1.3% prior.

Levels for a loaded calendar

Upside: Holding 1.3400 keeps 1.3450 in play, and a Tehran-confirmed weekend signing paired with a UK growth beat opens the road toward 1.3500.

Downside: A slip back through 1.3400 would unwind the 200-day EMA reclaim within a day; an Iranian denial or an ugly GDP print targets 1.3350 first, with the 1.3300 handle the fuller round trip.

Bias: Constructive above 1.3400 while the peace tape holds, but this is the major with the most scheduled ways to lose its gains, so let the calendar set the position size.

GBP/USD 5-minute chart