GBP/USD stalls at 1.2750 on dual UK-US rate cut expectations

GBP/USD remained range-bound near 1.2750 on Thursday, hitting five-week highs before retreating as markets priced in rate cuts from both the Bank of England and Federal Reserve. The pair gained 0.1% intraday but struggled to maintain momentum above key resistance. UK economic optimism has faded amid persistent inflation concerns, with markets now pricing a 65% probability of a BoE rate cut in Q1 2025. Similarly, Fed rate cut expectations for early 2025 have increased to 70%, limiting dollar strength. Technical analysis shows immediate resistance at 1.2780 (5-week high) with support at 1.2720 (50-day moving average). The pair remains trapped in a 1.2700-1.2800 range as traders await clearer monetary policy signals. Friday's UK GDP data and next week's US CPI release will be crucial for determining the pair's next directional move.