Rising in inflation and strong labor market support the poundBRITISH POUND / U.S. DOLLARFX_IDC:GBPUSDWiseLeoTradingFundamental analysis UK September CPI rose to 3.5% YoY from 3.1%, exceeding the 3.4% consensus; monthly inflation reached 0.4%, versus 0.3% expected. Transport, particularly motor fuels, drove the acceleration, with fuel prices rising 29.8% annually. However, the pressure was not exclusively energy-related: core inflation increased to 2.8% from 2.6%, while services inflation climbed to 3.7% from 3.4%. This combination points to an energy-led shock accompanied by firmer underlying price pressures, rather than clear evidence of stronger domestic demand. The inflation surprise combined with a strengthening labor market strengthens the case for BoE tightening and supports the pound through UK interest-rate expectations. Governor Andrew Bailey and other policymakers have warned that persistently elevated energy prices increase the likelihood of a hike. Technical Analyst: GBPUSD retains a bullish structure near 1.3390, above both rising moving averages. Higher highs and higher lows favour continuation, although RSI near 70 signals stretched momentum beneath 1.3400 resistance. A close above 1.3400 would confirm a breakout, opening the way toward R2 at 1.3420, provided price holds above the breakout level. Conversely, closing below 1.3360 would weaken momentum and expose S2 at 1.3340; a further break could extend the correction toward 1.3300. By Van Ha Trinh - Financial Market Strategist at Exness