GBP/USD holds steady as sterling sentiment improves amid UK data hopes

GBP/USD maintained stability near current levels as market sentiment shifted favorably toward sterling, supported by expectations of improving UK economic conditions. The pair has found equilibrium as traders balance persistent US dollar strength against renewed optimism for the British pound. Recent UK data releases have exceeded expectations, reducing concerns about economic stagnation and supporting Bank of England's hawkish stance. Technical indicators suggest the pair is consolidating within a defined range, with resistance emerging near 1.2750 and support holding at 1.2650. The US Dollar Index futures have shown signs of topping, providing additional breathing room for sterling bulls. Traders are positioning for potential UK inflation data later this week, which could determine whether the positive sentiment translates into sustained upward momentum. Near-term price action likely depends on relative central bank policy expectations between the Fed and BoE.