GBP/USD consolidates near 1.2650 as traders await NFP impact

GBP/USD has stalled its recent rally, trading sideways around 1.2650 as market participants position cautiously ahead of crucial US employment data. The pair gained 0.4% earlier in the week but has since retraced gains, forming a consolidation pattern between 1.2630-1.2670. Sterling's momentum has been supported by expectations of delayed Bank of England rate cuts due to persistent UK inflation concerns. However, strong US labor market data could strengthen the dollar and pressure cable lower. Technical analysis reveals immediate resistance at 1.2680 (weekly high), while support lies at 1.2620 (50-day moving average). RSI indicators remain neutral at 52, suggesting balanced momentum. A break above 1.2680 could target 1.2720, while disappointing NFP figures below consensus might weaken the dollar and propel GBP/USD toward the 1.2700 psychological level.