GBP/USD gains as UK housing recovery boosts pound sentiment

GBP/USD has strengthened to 1.2680, gaining 0.25% as improving UK housing market conditions and strong foreign investment flows support sterling. The Royal Institution of Chartered Surveyors (RICS) reported a significant turnaround in sales expectations, with surveyors turning notably more optimistic about future activity. House price expectations stabilized despite current weakness, driven by rate-cut expectations and increased fiscal clarity following the autumn budget. Additionally, McKinsey data shows the UK climbed to third place globally for foreign direct investment (FDI), with AI and clean energy sectors leading inflows. This combination of domestic recovery signs and international investment confidence has provided underlying support for the pound. Technical resistance lies at 1.2720, while support is found at 1.2640. Traders are monitoring upcoming UK inflation data and Bank of England communications for further directional cues.