Cable Pulls Back from 3-Year High but Maintains Bullish Tone After Hot UK Inflation Print

GBP/USD eased towards the 1.3400 area on Wednesday after a strong rally driven by hotter-than-expected UK inflation data briefly pushed the pair above the 2024 and 2025 highs (1.3434/1.3444), hitting a fresh three-year peak at 1.3468.

While the advance was short-lived as traders booked profits on overbought signals, the broader bullish structure remains firmly intact.

Sterling continues to benefit from a broadly weaker dollar and rising UK inflation in April—which marked the biggest jump since 2022 and the highest level in 15 months—fueling expectations that the Bank of England may delay or reduce the scale of rate cuts, thereby boosting the pound’s appeal.

Daily technical indicators maintain a strong bullish configuration, with rising momentum, a supportive thick daily cloud, and a pending Tenkan/Kijun-sen bull cross. However, some consolidation is likely in the near term due to overbought conditions and lingering resistance at the 1.3434/44 zone.

Any dips are expected to remain shallow and may offer renewed buying opportunities within the prevailing uptrend.

Res: 1.3468; 1.3500; 1.3557; 1.3600
Sup: 1.3400; 1.3360; 1.3305; 1.3250