GBP/USD Soars Above 1.3500 Amid Broad-Based US Dollar Weakness

The British pound has surged against the US dollar, breaking above the psychologically significant 1.3500 mark as the greenback continues to face broad-based selling pressure.

The main driver behind this move is not a surge in Sterling-specific demand but rather a weaker US dollar, weighed down by shifting expectations around the Federal Reserve's monetary policy trajectory.

From a technical standpoint, the break above 1.3500 is significant, with key resistance zones lying at 1.3550 and 1.3600. On the downside, the recent breakout level at 1.3500 now serves as immediate support, with a stronger support base near 1.3450.

The Relative Strength Index (RSI) on the daily chart is approaching overbought territory, suggesting that the recent upward move may be overextended in the short term.