The GBP/USD pair, often referred to as "Cable," was demonstrating strength as of Friday, poised for a weekly close with a gain of around 1.5%. This upward momentum is supported by stronger UK economic data and weaker US macroeconomic indicators.

Key Drivers and Upcoming Data

In the upcoming week, crucial UK inflation figures and global PMI data are expected to influence the next move. Our analysis of GBP/USD remains bullish, primarily due to our bearish outlook on the US dollar.

Technical Analysis

On the technical front, GBP/USD is eyeing a bullish breakout from a couple of converging trendlines on the long-term charts. The pair is targeting a break above the resistance level around the 1.2700 area.

Will It Be Successful?

The success of this potential breakout will depend on several factors, including:

• UK Inflation Data: Higher-than-expected inflation could further support the pound.

• Global PMI Data: Positive global economic data could boost risk appetite, benefiting GBP.

• US Dollar Weakness: Continued bearishness on the dollar will support GBP/USD upward momentum.

Given these elements, our GBP/USD analysis remains optimistic about a potential bullish breakout above the 1.2700 resistance. Investors should watch for these key data releases to gauge the likelihood of a successful move.