Yesterday, the UK inflation went higher after retreating last month. That has attracted bids towards the GBP, and GBP/USD has been surging breaking above 1.33.

The UK average earnings (wages/salaries) report will be published shortly today, and that’s another big piece of the puzzle for the Bank of England (BOE) which is meeting tomorrow to decide on the future of monetary policy.

That's the level to keep in mind.

Another positive earnings report would probably encourage GBP bulls further. The earnings are expected to have increased by 0.2% to 2.3% in the last quarter, so even if the actual number comes as expected, the chances are that GBP will rally.

1.34 is one place where the buyers should take some profit off the table, since the 100 SMA on the weekly chart is going to provide some solid resistance. I might take a small sell trade, because the BOE is meeting tomorrow, and the market fears any dovish remarks.