GBP/USD Extends Rally to 1.2750 on Dollar Weakness

GBP/USD has climbed 0.5% to 1.2750, marking its third consecutive day of gains as US shutdown risks and weak labor market indicators pressure the dollar. The pair broke above the key resistance at 1.2720, triggering additional buying interest. US JOLTS job openings fell to 7.44 million in August, below the expected 7.65 million, suggesting cooling labor demand. Meanwhile, UK economic data remains relatively stable, with services PMI holding at 53.1, indicating continued expansion. The potential US government shutdown adds another layer of uncertainty, with traders reducing dollar exposure ahead of Friday's deadline. Technical indicators show GBP/USD approaching overbought conditions on the daily RSI at 68, with immediate resistance at 1.2780 (August high). Support has formed at 1.2700 psychological level. A sustained break above 1.2780 could open the path toward 1.2850, while failure to hold above 1.2700 might trigger profit-taking.