GBP/USD surges as pound posts strong Q2 finish

GBP/USD rallied significantly as the British pound concluded the second quarter on a high note, with the pair advancing approximately 0.8% in recent sessions. The sterling's strength reflects improved market sentiment toward UK assets following better-than-expected economic data releases throughout Q2. The pound's momentum has been supported by expectations that the Bank of England may maintain higher interest rates for longer than previously anticipated, creating a favorable rate differential against the US dollar. Technical analysis shows GBP/USD breaking above key resistance levels, with the pair now targeting the 1.2800 psychological level. The quarterly performance marks one of the pound's strongest periods against the dollar in recent years, with cumulative Q2 gains exceeding 2.5%. Near-term support has formed at 1.2650, while sustained momentum could push the pair toward 1.2850 if positive sentiment continues.