GBP/USD Bullish Setup Forms Amid Strong UK Inflation Data

The GBP/USD currency pair is experiencing a bullish setup due to last week's high UK CPI print, which has strengthened the British Pound. The US Dollar, on the other hand, has firmed up despite showing short-term bearish momentum.

Despite this, the technical picture for the GBP/USD is clearly bullish, with an ascending and symmetrical price channel that held for three weeks before a breakout above it last week.

The price has also formed a sequence of higher lows over the past month, indicating an accelerating bullish trend. The bearish head and shoulders chart pattern that seemed to be forming late last week has been invalidated.