GBP/USD: Resistance Rejection, Short Play Active

Technical Setup

GBP/USD is trading at 1.26261, currently stuck within its day range of 1.25903 — 1.26619. However, the 24h change is negative, signaling underlying weakness. Price action is pressing hard against resistance at 1.2662. We saw the day high hit 1.26619. This is a clear rejection. My entry is set for 1.2635, a textbook retest entry below that resistance. Stop Loss is tight at 1.2678.

Fundamental Outlook

While the market is sideways, the broader sentiment for GBP remains challenged. Persistent UK inflation and ongoing economic growth concerns are weighing on the Pound, while the US dollar holds firm on a relatively hawkish Fed. This divergence provides the fundamental tailwind for our short position.
Targeting 1.2528. Simple is best. Let it play out.