GBP/USD resilient at 1.2450 as Fed uncertainty weakens dollar rally

GBP/USD maintains strength near 1.2450, advancing 0.2% (25 pips) as political uncertainties surrounding Federal Reserve policy direction undermine dollar rally attempts. The pound's resilience comes despite mixed UK economic signals, with traders focusing on speculation about potential Fed policy shifts amid changing political landscape. EUR/GBP remains stable at 0.8680, indicating broad sterling strength rather than euro weakness. Meanwhile, GBP/JPY consolidates near 188.50 as risk sentiment remains cautiously optimistic. The dollar index has retreated 0.3% from recent highs as markets reassess the Fed's hawkish stance sustainability. Technical analysis shows GBP/USD defending key support at 1.2420, with bulls targeting 1.2500 psychological resistance. Further pound gains depend on maintaining above the 200-day moving average at 1.2400, while any dovish Fed signals could accelerate sterling's advance toward 1.2550.