Against the backdrop of some renewed US Dollar weakness, the GBP/USD pair got an additional boost from Tuesday's UK inflation figure. The headline UK CPI came in at 3.0% for January and the core CPI reading jumped to 2.7%, its highest level since 2011. The data was now seen pressuring the Bank of England to raise interest rates at a faster pace than previously anticipated and underpinned the British Pound.
The pair held on to its gains near the 1.3900 handle on Wednesday as focus shifts to the US consumer price inflation data, which might influence March Fed rate hike expectations and eventually provide some fresh directional impetus. Today's US economic docket also features the release of monthly retail sales and would further contribute towards influencing the pair's momentum later during the early NA session.
Currently placed near a short-term descending trend-line resistance, forming a part of bullish falling-wedge chart pattern, bulls are likely to wait for a follow-through buying interest before positioning for any additional gains. A clear breakthrough the mentioned hurdle, around the 1.3915-20 region, the pair is likely to aim towards reclaiming the key 1.40 psychological mark.
Alternatively, a retracement from current resistance area, leading to a subsequent break below 1.3865 horizontal support might turn the pair vulnerable to head back towards challenging the 1.3800 handle before eventually dropping towards the falling wedge support, around the 1.3700 round figure mark with some intermediate support near the 1.3765-60 region.
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