GBP/USD Breaks Higher as Bullish Momentum Accelerates Above 1.2700

GBP/USD has surged 0.6% to 1.2750, breaking through key technical resistance levels as bullish momentum reasserts itself in early week trading. The pair has gained 85 pips from Monday's open, supported by renewed sterling strength and continuing dollar weakness across the board. Technical analysis reveals a decisive break above the 1.2700 resistance zone, which had capped gains for the past two weeks, signaling potential for further upside. The move coincides with improved UK economic sentiment and speculation that the Bank of England may maintain higher rates longer than previously anticipated. Immediate resistance lies at 1.2780 (January high), while newly established support sits at 1.2700. RSI indicators have entered overbought territory at 72, suggesting possible near-term consolidation. Traders are positioning for potential continuation toward the 1.2800 psychological level, particularly if upcoming UK GDP data exceeds expectations.