GBP/USD Surges to 1.2730 as Bulls Break Key Resistance

GBP/USD rallied 0.5% to 1.2730 during European trading, successfully breaking above the 1.2700 resistance level that had capped gains for the past week. The pound's strength was supported by better-than-expected UK Services PMI data, which rose to 53.7 from 52.5, indicating robust expansion in the services sector. Technical momentum has turned decidedly bullish, with the RSI climbing above 65 and the pair trading above all major moving averages. The breakthrough above 1.2700 has opened the path toward the next resistance at 1.2780, coinciding with November highs. Support has now formed at the former resistance of 1.2700, with additional backing at 1.2650. Trading volumes increased 20% during the breakout, confirming strong buying interest. The move positions GBP/USD for potential continuation toward the 1.2800 psychological level if momentum persists.