GBP/USD gains 0.3% as UK CPI meets expectations before FOMC

GBP/USD climbed 0.3% to 1.2720 on Wednesday following UK inflation data that met market expectations, with headline CPI holding steady and food inflation showing an uptick. The pound found support as the inflation figures reduced concerns about aggressive Bank of England rate cuts, maintaining the central bank's cautious stance on monetary policy easing. Sterling's advance comes as traders position ahead of the Federal Reserve's policy decision, with markets pricing in potential dovish signals from the FOMC. Technical indicators show GBP/USD breaking above the 1.2700 psychological level with immediate resistance at 1.2750, coinciding with the 50-day moving average. The pair's momentum indicators turned positive, suggesting further upside potential if the Fed adopts a more accommodative tone. Support levels are established at 1.2680 and 1.2650, providing a cushion for any pre-FOMC volatility.