GBP/USD longs face pressure as rebound stalls below key resistance

GBP/USD is struggling to maintain upward momentum, trading at 1.2650 with a marginal gain of 0.15% (19 pips), as traders who entered long positions at higher levels require a more substantial recovery to break even. The pair's inability to breach the 1.2700 resistance level has raised concerns about the sustainability of recent gains, particularly as the dollar maintains its defensive stance. Technical analysis reveals that positions initiated above 1.2750 remain underwater, creating potential selling pressure if the current rebound fails to accelerate. The 200-day moving average at 1.2680 represents a critical hurdle that must be overcome to validate bullish momentum. Support levels are identified at 1.2620 and 1.2580, which could be tested if risk sentiment deteriorates. Market participants are closely monitoring upcoming UK economic data and Bank of England commentary for catalysts that could drive the pair higher, though current price action suggests cautious optimism rather than confident buying.