GBP/USD awaits UK inflation data amid BOE rate cut expectations

GBP/USD trades cautiously around 1.2970 ahead of today's UK inflation release, with markets anticipating key data that could influence Bank of England policy decisions. Services inflation is expected to moderate to 4.5% year-on-year from 4.7%, which would support growing expectations for BOE rate cuts. While headline and core inflation figures are projected to remain similar to May's levels, persistent food price uncertainties add complexity to the outlook. The pound has shown limited movement in early trading as investors await confirmation of the cooling services sector inflation. Technical indicators suggest immediate support at 1.2950 with resistance at 1.3000. A softer-than-expected services inflation reading could pressure sterling below the 1.2950 support level, while any upside surprise might challenge the psychological 1.3000 barrier. Traders are closely monitoring this data release as it will likely shape market expectations for the timing and pace of BOE monetary policy easing in the coming months.