GBPUSD ANALYSIS

• GBP/USD’s rally stalls as US inflation encourages more Fed rate hike expectations.
• Cable’s upside depends on the UK’s inflation, Fed minutes and US data.

The pound is likely to emerge as one of the best performers across G10 currencies this week, defying the broad US dollar strength. However, the currency pair mostly maintained its previous week’s higher ground, induced by the hawkish BOE rate hike. The pair traded between 1.3485-1.3645 amid encouraging fundamentals and persistent Brexit concerns.