GBP/USD Rejected at 200-SMA as Dollar Strength Caps Sterling Rally

GBP/USD bulls encountered firm resistance at the 200-day simple moving average, resulting in a notable rejection that has shifted short-term momentum back in favor of sellers. The pair had been grinding higher on improving UK economic sentiment and expectations that the Bank of England would maintain elevated interest rates. However, the failure to sustain gains above the 200-SMA — a widely watched technical level — suggests that broader dollar resilience continues to cap sterling's upside. The rejection pattern often signals further consolidation or downside retracement, with immediate support likely forming near recent swing lows. Traders should note that the 200-SMA has acted as a reliable inflection point for GBP/USD over recent months, making this level a critical battleground. Fundamental drivers remain mixed, with UK CBI data showing a slower pace of deterioration in retail sentiment, while US macro data keeps the greenback supported. A renewed attempt above the 200-SMA would require a stronger catalyst, potentially from upcoming UK GDP or US employment figures.