GBP/USD drops to 1.2650 support as selling pressure intensifies
GBP/USD declined 0.5% to test critical support at 1.2650 as selling pressure mounted amid concerns over UK economic fundamentals. The sterling faced headwinds from weak UK retail sales data showing a 0.3% monthly decline versus 0.1% expected, raising questions about consumer resilience. Technical indicators point to oversold conditions with RSI at 32, suggesting a potential bounce, though momentum remains bearish. The pair has broken below the 200-day moving average at 1.2680, signaling a shift in medium-term trend. Immediate support lies at 1.2650, with a break potentially accelerating losses toward 1.2600. Resistance now stands at 1.2680-1.2700 zone. Bank of England officials' recent dovish comments about potential rate cuts have added to sterling weakness. Traders await Thursday's UK GDP data which could either validate current pessimism or provide relief for the embattled pound.
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