GBP/USD Slips to 1.2640 as Risk-Off Sentiment Boosts Dollar Haven Flows

GBP/USD has declined 0.4% to 1.2640 in Monday's session as deteriorating risk sentiment drives investors toward the safe-haven US dollar. Global equity markets fell sharply with the S&P 500 down 1.2%, triggering defensive positioning across currency markets. The pound's recent rally faces its first significant test as traders book profits near the 1.2700 resistance level. Despite today's pullback, the pair remains above the critical 1.2600 support, maintaining its broader uptrend structure. The Dollar Index surged 0.6% to 104.80, benefiting from haven demand amid concerns over global growth prospects. UK economic fundamentals remain supportive, but short-term momentum has shifted negative with RSI falling below 50. Immediate support lies at 1.2620 (50-day MA), while resistance at 1.2680 must be reclaimed to restore bullish momentum. Traders await Tuesday's UK Services PMI data, which could determine whether this pullback extends or buying interest returns.