The Pound Sterling extends its recovery above 1.2700 on sticky UK service inflation data. The GBP/USD pair rises to near the 20-day Exponential Moving Average (EMA) at 1.2720, though the near-term trend is still uncertain. The 50-day EMA near 1.2670 is acting as a major support for the Pound Sterling bulls.

Currently, the Cable holds the 61.8% Fibonacci retracement support (plotted from the March 8 high of 1.2900 to the April 22 low at 1.2300) at 1.2667.

The 14-period Relative Strength Index (RSI) falls back into the 40.00-60.00 range, indicating that the upside momentum has faded