Sterling adjusting ahead of US PCE data

Taking a look at the GBP/USD pair after the pound has rallied over the past couple of weeks, with now what looks like an adjustment right before the eagerly anticipated US PCE data due today. Currently, sterling trades at around £1.2715 versus the dollar. Based on the daily chart, we can see the newly formed resistance level at £1.28.  This has led to some profit-taking in the past few days, with the pair coming close to testing the support of £1.2675. A break below this support level would likely pull back towards the supportive trendline, where support reads £1.2650. On the other hand, if sterling appreciation continues, a move above £1.28 could see the pair climb back up to this year’s highs around £1.29. Regarding the technical indicators, they are creating a minor concern for traders. The MACD is edging towards the negative side and the RSI has somewhat faltered as it reads 58.