GBP/USD higher as UK inflation awaited

After a gloomy start to the week, the GBP/USD picks some upside momentum as it rallies to 1.2800 in the early hours of Tuesday’s Asian session. In doing so, the Cable pair oscillates within a one-week bullish trend pattern, reaching its highest levels in 14 months.

To counter the week’s early drop from its best levels since April 2022, the GBP/USD pair picks up bids. The one-week-old ascending trend channel defends buyers of the pound shilling in the face of hawkish BoE worries and problems with UK inflation.

In addition to the bullish channel, the positive bias surrounding the price of the pound sterling is supported by the 21-SMA level and hawkish expectations from the Bank of England (BoE), despite buoyant inflation pressure in the UK.

It should be noted that according to the most recent data from Lloyds Bank, British food manufacturers recorded the first decrease in their production costs since 2016 in May as cheaper shipping and reduced commodity and energy prices offset an increase in pay costs. The same emphasises the importance of Thursday’s BoE pronouncements and the importance of traders’ attention to the UK inflation figures released on Wednesday.