UK markets have a fair bit to contend with this week – CPI on Wednesday and the BoE policy decision on Thursday. A ‘dovish hike’ a la ECB would pressure the GBP and, at the margin, add to price pressures.  

The GBP is soft but intraday price action is – right now – showing some signs of relative strength via a bullish outside range session on the six-hour chart. 

If the GBP can sustain gains through 1.24, a deeper squeeze may develop towards 1.2450 resistance. A clear move above this point is needed to indicate more GBP strength. 

Support is 1.2375.