GBP/USD falls below 1.2700 on weak UK jobs data, strong US retail sales

GBP/USD declined 0.4% to 1.2680 as disappointing UK employment data contrasted sharply with robust US retail sales figures. UK unemployment unexpectedly rose to 4.4% from 4.3%, while wage growth slowed to 5.7% year-over-year from 6.0%, raising concerns about the UK economy's resilience. The weak labor market data reduces pressure on the Bank of England to maintain aggressive rate hikes. Meanwhile, US retail sales jumped 0.7% month-over-month, significantly beating the 0.4% forecast and reinforcing the Federal Reserve's hawkish stance. Technical analysis shows GBP/USD breaking below the crucial 1.2700 support level, with next support at 1.2650. The 50-day moving average at 1.2720 now acts as resistance. Traders are positioning for further sterling weakness unless UK data improves. The diverging economic trajectories between the UK and US suggest continued pressure on the pound in the near term.