The British Pound (GBP) surged to a new year-to-date (YTD) high on Thursday, exceeding 1.2900, as the US Dollar (USD) weakened on softer-than-expected US inflation data. Additionally, better-than-expected UK economic data further boosted the Pound’s appeal.

Technical Outlook: GBP/USD Uptrend Remains Firm, Targets 1.3000+

The GBP/USD pair continues its bullish trajectory, with the recent breakout above the March 8th high of 1.2894 confirming the strength of the uptrend. The Relative Strength Index (RSI) remains in bullish territory, indicating sustained buying pressure, although slightly approaching overbought conditions.

If the upward momentum persists, the next resistance levels to watch are 1.2950 and the July 27th, 2023 peak of 1.2995. A decisive break above these levels could propel the GBP/USD towards the psychological level of 1.3000 and potentially even the July 14th, 2023 high of 1.3142.

Conversely, a pullback below 1.2900 could trigger a minor correction, with initial support found at 1.2894, followed by the June 12th high turned support at 1.2860. A deeper correction could test the 1.2800 mark.

Key Points:

• GBP/USD reaches new YTD high on strong UK data and weak US inflation.
• Bullish momentum remains strong, with further upside potential.
• Key resistance levels: 1.2950, 1.2995, 1.3000, 1.3142
• Key support levels: 1.2900, 1.2894, 1.2860, 1.2800