GBP/USD Rally Stalls at Multi-Year Highs Near 1.2800

GBP/USD surged from mid-May lows to reach multi-year highs around 1.2800 on May 26th, marking an impressive rally of approximately 2.5% (300+ pips) over two weeks. The sterling's strength was driven by better-than-expected UK economic data and growing expectations that the Bank of England may maintain higher rates longer than previously anticipated. However, the pair now shows signs of exhaustion, with momentum indicators suggesting overbought conditions. Daily RSI readings above 70 and declining volume indicate the rally may be losing steam. Key resistance sits at the psychological 1.2800 level, while immediate support has formed at 1.2750. Traders should watch for potential profit-taking and consolidation in the near term. A decisive break above 1.2800 could target 1.2850, though failure to maintain current levels might trigger a correction toward the 1.2700 support zone.