GBP/USD tests bullish channel top near 1.2750 amid USD weakness

GBP/USD is trading at the upper boundary of its established bullish channel, approaching key resistance levels as dollar weakness persists. The pair has maintained its upward trajectory within the ascending channel formation, with current price action testing the upper trendline resistance. Technical analysis indicates the pair faces a critical juncture where it must either break above the channel for acceleration higher or face potential reversal back toward channel support. The sustained dollar weakness, driven by Federal Reserve rate cut expectations, has provided additional tailwind for sterling's advance. Immediate resistance lies at the channel top near current levels, while support is found at the channel midpoint around 1.2680. A decisive break above the channel could target 1.2800 psychological resistance, while rejection here might see a pullback toward 1.2650 channel support. Traders should monitor upcoming UK economic data and any shifts in Fed policy expectations for directional cues.