GBP/USD Extends Rally for 4th Day on BoE Rate Cut Uncertainty

GBP/USD has extended its gains for a fourth consecutive session as sterling continues to benefit from shifting expectations around the Bank of England's rate trajectory. The pair has pushed higher as investors reassess the pace and timing of potential BoE rate cuts, with resilient UK economic data providing support for the pound. Market participants are closely monitoring upcoming BoE commentary and UK macro releases for clues on whether the central bank will maintain a more hawkish stance relative to its peers. The sustained four-day rally suggests strong underlying demand for sterling, though the extended move raises questions about whether the pair is approaching overbought territory. Key resistance is being watched near the 1.2700-1.2750 zone, while support has formed around the 1.2600 level. Traders should remain vigilant for any dovish shifts in BoE rhetoric, which could quickly reverse recent gains. Broader dollar dynamics, including upcoming US data releases, will also play a critical role in determining near-term GBP/USD direction.