Sterling edged higher after the UK’s CPI accelerated to 9.1% in May. A previous surge above 1.2200 prompted sellers to trim their positions, reducing the downward pressure. The former supply zone has turned into a demand one (1.2180) where buyers would look to hold onto their gains. A close above 1.2400 may bring the pound to June’s high at 1.2600, a major resistance on the daily chart. 1.2050 is an important support to keep the rebound valid. Otherwise, the pair would resume its bearish course.
