The pair is looking particularly buoyed this week, helped out by a technical break above the June highs but also after the hot wages data from the UK labour market report yesterday. A softer dollar is also contributing to all that and we are seeing price now hold a push above 1.2900 to its highest levels since April last year.
The high earlier today hit 1.2969 before the pair is now trading more flattish around 1.2934. It seems like buyers are taking a little off the top ahead of the US CPI data later.
But if the inflation numbers do come in softer than expected, that should lead to further selling in the dollar this week.
And with the greenback looking particularly vulnerable across the board, that might see GBP/USD buyers take a run at trying to break above 1.3000 later on.
The figure level is a key one to watch with offers lined up and is a big psychological barrier as well. For now, buyers are definitely keeping poised with price action also holding above the 200-week moving average of 1.2882 this week.
It's all down to the US CPI data later to see if we will be getting a further upside break.
