The cost of living in the United Kingdom, as reflected by the Consumer Price Index (CPI), is due early on Wednesday at 06:00 GMT. Given the recently announced underwhelming employment statistics, as well as the Bank of England’s (BOE) preparation for Quantitative Tightening (QT), GBP/USD traders will be eagerly watching today’s British inflation data.

The subject line CPI inflation is predicted to return to a 30-year high of 10.0% YoY versus 9.9% previously, while Core CPI, which includes volatile food and energy goods, is expected to increase slightly to 6.4% YoY during the indicated month, up from 6.3% previously.

In terms of monthly numbers, the CPI could fall to 0.4% from 0.5% previously. It’s worth mentioning that the recent wage pressure and buoyant jobs report emphasizes the Producer Price Index (PPI) as a significant driver for the GBP/immediate USD’s direction. However, the PPI Core Output YoY may fall to 12.7% from 13.7% on a non-seasonally adjusted basis, while monthly prints may grow to 0.9% from 0.3% previously.

Furthermore, the Retail Price Index (RPI) is set to be released, with a 0.5% MoM drop from the previous reading of 0.6%, while the 12.3% YoY figure is projected to remain steady.

GBP/USD Technical Outlook

The GBP/USD pair is consolidating above the support line of the bullish channel. The EMA50 provides constant positive support, and stochastic is now sending out new positive signals. This means that the price should resume the bullish wave and head towards our next targets, which start at $1.1490 and go up to $1.1660.

As a result, we will continue to recommend a bullish trend for the foreseeable future, noting that a breach of $1.1305 followed by $1.1270 will halt the predicted climb and pressure the price to fall.

Today’s trading range is predicted to be between 1.1270 support and 1.1430 resistance.