GBP/USD rebounds fully as dollar sellers emerge - cable erases losses

GBP/USD has staged a complete recovery from earlier losses, with cable rallying back to unchanged levels around 1.2650 as dollar sellers quickly emerged following initial strength. The pair had dropped as low as 1.2615 during early trading on tariff concerns before buyers stepped in aggressively. The swift reversal suggests underlying sterling support remains intact despite broader risk-off sentiment in markets. Technical analysis shows the 1.2615 level acting as strong intraday support, coinciding with the 50-day moving average. The bounce indicates traders view any dollar strength as temporary selling opportunities, particularly against the pound. Immediate resistance sits at 1.2680, yesterday's high, while a break below 1.2615 would target 1.2580. The rapid recovery demonstrates continued two-way volatility in cable, with positioning likely to remain choppy ahead of this week's UK economic data releases including Wednesday's services PMI.