Having received momentum from the dollar developing a downward correction, GBP/USD is rising today.

The dollar is weakening and the DXY dollar index is declining after surpassing the 109.00 mark last week. As of the publication of this article, DXY futures are near the 107.34 mark.

And with a strong bullish momentum and a long-term uptrend in the DXY, a break-up of the local resistance at 109.00 will be a signal to go long on the DXY futures, “with an upside potential to the multi-year highs of 121.29 and 129.05, reached in June 2001 and November 1985, respectively.

As for the pound, it is worth paying attention to the release of important UK macro statistics on Tuesday and especially on Wednesday

The country’s next inflation release on Wednesday (at 06:00 GMT) could have a much bigger impact on the pound. UK inflation is expected to set a new anti-record at 9.2% in June (after annual increases of 9.1%, 9.0%, 7.0%, 6.2%, 5.5% in previous months since the beginning of this year).

If so, the pressure on the Bank of England to further tighten its monetary policy will increase, and this is a bullish signal for the pound. Although, the market reaction may be unpredictable: the Bank of England has already didn’t keep up with the soaring inflation rate, which, according to the Bank of England economists, may be higher than 11% this year.

In the basic scenario we expect renewal of decrease either near local resistance level 1.2000, or near marks 1.2075, 1.2100, 1.2150. Therefore, it will be logical to place here pending sell orders (Sell Limit). A breakdown of support level 1.1922 will be a confirmation signal