GBP/USD eyes 1.2450 resistance; DAX weakness weighs on EUR crosses

GBP/USD advanced 0.3% to 1.2420 as technical buying emerged above the 1.2400 psychological level, with traders targeting 1.2450 resistance. The pound's strength contrasts with European currency weakness, as the DAX index declined 0.8% amid broader eurozone concerns. Cable shows bullish momentum indicators with RSI at 58 and MACD crossing above signal line. Meanwhile, EUR/GBP dropped to 0.8685, reflecting relative pound strength against the euro. The DAX weakness at 19,250 points suggests risk-off sentiment in European markets, potentially supporting further GBP outperformance. Key support for GBP/USD sits at 1.2380 (previous resistance turned support), while a break above 1.2450 could open the path to 1.2500. Traders await UK inflation data Wednesday, which could provide additional directional catalyst for sterling pairs.