Pound Holds Near Feb. Highs as Bulls Await Breakout Above 1.3660

The British pound has been trading near its February 11 highs against a weaker US dollar. Bulls are eyeing a decisive breakout above the 1.3660 resistance level, which could signal further gains toward 1.3700.

The GBP/USD pair's strength is buoyed by stronger-than-expected UK economic data and persistent dollar softness. The US dollar index has retreated from recent peaks due to reassessments of the Federal Reserve's rate-cut timeline. Meanwhile, the Bank of England remains cautious but less dovish than its US counterpart.

Technical traders are watching the 1.3660 level closely, as it has capped upside attempts since early February. A clear break above this level could open the door to further gains. However, failure to break through could lead to a consolidation phase or a pullback toward support at 1.3580.

The pound's resilience is underpinned by improving UK economic sentiment. Recent PMI data came in better than expected, and the labor market remains tight, supporting the case for the Bank of England to keep rates higher for longer.