GBP/USD Hits Fresh Highs as Broad Dollar Weakness Lifts the Pound

GBP/USD has surged to fresh multi-week highs as broad-based US dollar weakness continues to support the British pound. The pair benefited from a combination of reduced dollar demand amid easing geopolitical tensions and improving sentiment around UK economic fundamentals. Traders have rotated out of dollar-denominated safe havens as US-Iran diplomatic progress reduces risk premiums across global markets. The pound has also found support from expectations that the Bank of England will maintain a relatively hawkish stance compared to the Federal Reserve, where rate cut expectations have been building. The pair's move higher places it near the 1.3600 handle, a significant psychological and technical resistance zone. A sustained break above this level could open the door toward 1.3650 and 1.3700 in the near term. Support is now established near 1.3550, the prior breakout level. Volume has been constructive on the advance, suggesting genuine buying interest rather than short covering alone. Traders should monitor upcoming UK economic data for confirmation of the pound's bullish momentum.