GBP/USD Extends Decline Below 1.2400 on Strong US Economic Data

GBP/USD has extended its decline, dropping 0.8% to trade below 1.2400 as upbeat US economic data reinforces dollar strength across the board. The pound's weakness intensified after US ISM Services PMI surged to 54.5, well above the 52.1 forecast, indicating robust service sector expansion. Additionally, US jobless claims fell to 201K, beating estimates and suggesting a tight labor market. The pair has broken below the key 1.2450 support level, opening the path toward 1.2350. Technical indicators show oversold conditions on the daily RSI, suggesting a potential relief bounce, though the overall trend remains bearish. This week's US inflation data will be pivotal - a higher-than-expected CPI reading could drive GBP/USD toward the 1.2300 psychological level. UK economic calendar remains light, leaving the pair vulnerable to continued dollar-driven movements.