GBP/USD Extends Downtrend as Sterling Weakens Against the Dollar

GBP/USD continues its gradual descent, extending a multi-session downtrend as the British pound struggles to find support against the US dollar. The pair has been grinding lower amid a lack of bullish catalysts for sterling, with traders noting persistent selling pressure on rallies. The Bank of England's cautious stance on rate cuts and softer-than-expected UK economic data have contributed to the bearish outlook for the pound. On the US side, relatively resilient economic indicators have kept the dollar bid, widening the policy divergence narrative. From a technical perspective, GBP/USD faces immediate support near 1.2650, with a break below potentially opening the door toward 1.2580. Resistance is seen around 1.2720, the recent swing high. The slow, methodical nature of the decline suggests orderly selling rather than panic, indicating that institutional positioning may be driving the move. Traders should watch for UK services PMI data and any shifts in BoE rhetoric for potential reversal signals.