GBP/USD pressured as UK consumer spending slumps in December

GBP/USD faces downward pressure following weak UK consumer spending data, with the pair trading near 1.2750 support levels. December's retail sales grew just 1.2% year-over-year, down from 1.4% in November and marking the weakest growth since May. Essential spending declined for an eighth consecutive month, highlighting persistent strain on UK households amid elevated living costs. The British Retail Consortium's data reinforces concerns about the UK economy's resilience, potentially limiting the Bank of England's ability to maintain hawkish monetary policy. Sterling weakness is compounded by growing recession fears as consumer confidence deteriorates. Technical indicators show GBP/USD testing the 1.2750 support zone, with a break below potentially accelerating declines toward 1.2700. Resistance sits at 1.2800-1.2820. Traders should monitor upcoming UK inflation and employment data for further directional cues on sterling's trajectory.