GBP/USD Surges on US Dollar Weakness, Forms Golden Cross Pattern

The GBP/USD pair has seen a significant rally in recent days, jumping to its highest level since May 11 of this year. This surge is attributed to the US dollar's softening across the board and the retreat of US bond yields after an intervention by the Treasury Department.

Data shows that the 30-year yield fell to 5.19% from its year-to-date high of 5.336%, following the announcement that the government debt repurchases would be doubled, targeting the 10- to 20-year and 20- to 30-year portion of the market.

The GBP/USD pair has also reacted to the latest UK inflation numbers, which showed a rise in the headline Consumer Price Index (CPI) from 2.6% to 2.9%, while the core figure remained unchanged at 2.6%. This development may lead the Bank of England to hike interest rates later this year.

A golden cross pattern has formed on the daily chart, indicating a potential trend reversal and further gains for the pair. The next key target is set at 1.3700, which will be confirmed if the pair moves above the crucial resistance level of 1.3658.