GBP/USD anticipates potential upside above 1.2250 ahead of UK Inflation data
The GBP/USD is anticipating further gains above 1.2250 due to the buoyant market sentiment. BOE's Mann sees no risk of overtightening in the current cycle of interest rate hikes. The US PPI is projected to decrease further on decreasing fuel prices and sluggish retail demand.

In the early Asian session, the GBP/USD pair is battling to extend gains above the immediate resistance level of 1.2250. The Cable has felt selling pressure when repeatedly surpassing the aforementioned resistance level, but it is currently likely to extend the uptrend due to a major improvement in market players' risk appetite.
A four-day winning streak in the S&P 500 indicates that the market sentiment is fairly optimistic. Investors are pouring money into perceived-risk assets while selling off perceived-safety assets. Surprisingly, 10-year US Treasury yields increased to 3.50 percent. Meanwhile, the US Dollar Index (DXY) was able to limit its decline to approximately 101.76.
This week, the Pound Sterling will be influenced by Wednesday's release of United Kingdom inflation statistics. According to forecasts, the headline Consumer Price Index (CPI) (Dec) is predicted to decrease to 10.6% from 10.7% previously. While the statistics for the core price index, which excludes oil and gas prices, may increase to 6.6% from the previous release of 6.3% for the same period of time.
It appears that UK inflation has become more persistent, and the Bank of England (BOE) will be compelled to continue increasing interest rates. Catherine Mann, a member of the BOE, stated that the central bank does not need to be concerned about the risk of overtightening in its interest rate-raising cycle.
On the United States front, investors are expecting the release of the Producer Price Index (PPI) data. The market anticipates a fall in headline factory gate prices of goods and services (Dec) from 7.4% to 6.8%. Also, the core PPI might cut to 5.9% from the earlier release of 6.2% in a similar era.
Bonus rebate to help investors grow in the trading world!