GBP/USD breaks 1.3200 on technical momentum above 38.2% retracement

GBP/USD has surged to fresh intraday highs, breaking through the 1.3200 psychological level after clearing key technical resistance between 1.31855-1.31902. This zone represented both the Monday-Tuesday highs and the crucial 38.2% Fibonacci retracement of the decline from mid-October peaks. The sterling's strength reflects improved risk sentiment and technical buying momentum as the pair extends its recovery from recent lows. The break above the 38.2% retracement level opens the path toward the 50% retracement near 1.3280, with immediate support now established at the former resistance zone around 1.3185. Traders are closely monitoring whether the pound can sustain gains above 1.3200, as a confirmed break could signal further upside potential toward 1.3250 resistance. The technical breakout suggests shifting momentum in favor of sterling buyers, though traders should watch for any fundamental catalysts that could either reinforce or challenge this bullish technical setup.