GBP/USD rises to 1.2480 on weak USD, persistent UK inflation

GBP/USD has gained 0.4% to 1.2480, supported by a softer US dollar and ongoing inflationary pressures in the UK. The US Dollar Index (DXY) has slipped 0.2% to 103.10, weighed down by mixed US economic data and a slight pullback in US Treasury yields. In the UK, the latest CPI report showed inflation remaining stubbornly high at 8.7% in April, exceeding the Bank of England's 2% target for the 14th consecutive month. The persistent inflation has fueled expectations of further interest rate hikes by the BoE, underpinning the pound. GBP/USD faces immediate resistance at 1.2520 (50-day MA), with a break above this level opening the door for a test of 1.2600. Support is found at 1.2430 (5-day low), and a slip below this level could lead to a deeper correction towards 1.2380.