GBP/USD: Sterling gains on UK growth, dollar faces persistent headwinds

GBP/USD has strengthened as robust UK economic growth data contrasts with ongoing US dollar weakness across major pairs. The pound's outperformance extends beyond the dollar, with GBP/EUR also advancing as UK economic indicators surpass eurozone counterparts. Recent UK GDP data has exceeded expectations, bolstering Bank of England hawks who anticipate sustained higher interest rates to combat persistent inflation. Meanwhile, the US Dollar Index continues to face pressure from mixed economic signals and uncertainty around Federal Reserve policy direction. Technical indicators suggest GBP/USD has broken above key resistance levels, with momentum indicators pointing to further upside potential. The pair's next major resistance lies at the 1.2800 psychological level, while support has formed at 1.2650. Traders should monitor upcoming UK inflation data and Fed officials' comments for directional cues, as diverging monetary policy paths between the BoE and Fed could extend sterling's recent gains.