Pound Surges Against Weak Dollar as Bulls Eye Breakout Above 1.3660

The British pound has been steadily increasing against a weakening US dollar, reaching levels near its February 11 highs. As of mid-February 2025, the GBP/USD pair is being supported by stronger-than-expected UK PMI and a tight labor market.

Bulls are targeting a decisive breakout above the 1.3660 resistance level to reach 1.3700, with support at 1.3580. The US dollar's weakness is due to expectations of Federal Reserve rate cuts, which could be supportive for risk assets including crypto and DeFi adoption.

Traders should monitor upcoming UK inflation data and US jobless claims for near-term direction. A stronger-than-expected UK CPI print or a dovish Fed speaker could accelerate dollar weakness and trigger a breakout above 1.3660.