GBP/USD stabilizes above 1.2600 as sterling finds technical support
GBP/USD has consolidated above the 1.2600 psychological level, gaining 0.2% to 1.2635 as technical buyers emerged following last week's oversold conditions. The pound's recovery comes despite ongoing UK economic concerns, with traders focusing on oversold RSI readings that dropped below 30. The US Dollar Index retreated 0.3% from recent highs at 107.50, providing additional support for cable. Market positioning data shows speculators have reduced net short GBP positions by 15% over the past week. Immediate resistance lies at 1.2680 (50-day MA), while support strengthens at 1.2580. UK GDP data due Thursday could provide the next directional catalyst, with economists expecting 0.2% quarterly growth. The pound's stabilization suggests a potential near-term bottom, though broader fundamentals remain challenging amid BOE rate cut expectations for early 2025.
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