GBP/USD Rebound Shows Signs of Dead Cat Bounce Pattern

GBP/USD's recent rebound is displaying characteristics of a dead cat bounce, suggesting the recovery may be short-lived and lacking fundamental support. The pair's upward movement appears to be a technical correction within a broader downtrend rather than a sustainable reversal. Volume analysis indicates weak buying interest during the bounce, while selling pressure remains evident at higher levels. Technical patterns suggest the pair could resume its decline once the temporary relief rally exhausts itself. Market sentiment toward sterling remains fragile due to persistent UK economic headwinds and dovish Bank of England expectations. Key resistance levels overhead continue to cap gains, with sellers emerging on any strength. Traders should remain cautious about chasing the rally, as dead cat bounces typically lead to renewed selling once momentum fades. The absence of strong fundamental catalysts supporting GBP appreciation reinforces the technical view that this may be a temporary pause in the downtrend.