GBP/USD maintains bullish trend despite retreat from 1.2650 highs

GBP/USD has pulled back 0.4% to 1.2580 after reaching recent highs near 1.2650, though the broader bullish structure remains intact. The pair's upward momentum has been supported by expectations of a more hawkish Bank of England stance amid persistent UK inflation concerns, contrasting with growing speculation of Federal Reserve rate cuts later in 2024. Technical indicators suggest the pullback may be a healthy correction within the uptrend, with the 50-day moving average at 1.2520 providing key support. Strong resistance emerged at 1.2650, coinciding with December 2023 highs. Bulls remain in control above 1.2500, with a break above 1.2650 potentially opening the path toward 1.2700. However, traders should monitor upcoming UK GDP data and US employment figures, which could trigger volatility and test the pair's resilience.