GBP/USD sticks to post UK CPI strong gains to fresh 2017 tops

The GBP/USD pair held on to its UK CPI-led strong gains to one-year highs and remains within striking distance of the 1.3300 handle.

The British Pound surged across the board after the UK headline inflation, as measured by CPI, came-in at 2.9% for August, matching the four-year high recorded in May. 

The report came ahead of the very important BoE monetary policy meeting on Thursday and might have also raised expectations of a hawkish tilt from the central bank, which is eventually supportive of the pair's strong bid tone. 

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Meanwhile, a subdued action around the key US Dollar Index, despite of a strong follow through up-move in the US Treasury bond yields, did little to stall the pair's upsurge to the highest level since Sept. 2016.

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Next in focus would be the release of JOLTS Job Openings data from the US, which is unlikely to overshadowed by repositioning trade ahead of this week's important macro data, including the UK jobs report, US CPI print and US monthly retail sales data.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "the pair is breaking through 1.3266, August and this year high. Further gains beyond this region should expose the 1.3300 level, en route to 1.3347, September 2016 monthly high."

"Previous September high at 1.3223 is the immediate support, with the next intraday one at 1.3160, the weekly low" she added.