GBP/USD surged to a new 2025 high at 1.2768, driven by persistent tariff-related uncertainty that has pressured U.S. Treasury yields and broadly weakened the dollar. Sterling continues to benefit from expectations of relatively higher UK yields compared to the U.S., despite indirect risks from global trade disruptions.

Technically, GBP/USD’s bullish momentum remains strong, with key resistance at the 200-day moving average (1.2786) now in focus. A clear break above this level could quickly target the December 6 high at 1.2811, paving the way toward the psychologically important 1.30 handle. Short-term support is firm at 1.2731 (10-hour moving average), with further downside protection at Tuesday's low (1.2679) and the February 28 low at 1.2569.

Looking forward, GBP/USD is likely to maintain its bullish bias provided U.S. yields stay depressed due to tariff concerns and risk aversion. However, traders will remain vigilant to signs that trade-related headwinds are spreading globally, which could eventually dampen sterling's upside potential. For now, the technical outlook remains bullish above 1.2731, targeting further gains toward 1.2811 and possibly beyond.