GBP/USD is trading below the resistance level of 1.2575 because of growing expectations of more aggressive rate hikes by the Bank of England and weakening demand for dollar. Another factor is falling US Treasury yields, which was influenced by increasing fears for recession and stagflation.
Technical picture:
The quote is above the middle line of the Bollinger indicator, above the SMA 5 and SMA 14. The relative strength index (RSI) is below the overbought level and is indicating a slowdown in growth, while the stochastic indicator remains in the overbought zone.
Possible dynamics:
Growth and consolidation above 1.2575 may lead to a local rise to 1.2700.