GBPUSD is trending higher on its short-term time frames, with its higher lows and higher highs connected by an ascending trend line that’s been holding since mid-November.

The pair looks ready for another dip to support around the 1.2100 major psychological mark, and technical indicators are pointing to a continuation of the climb. If support levels hold, GBPUSD could bounce back to the channel top around 1.2450-1.2500.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside. In other words, support levels are more likely to hold than to break.

Stochastic has some room to head south before reaching the oversold region to indicate exhaustion among sellers. However, the oscillator already seems to be pulling higher, hinting that buyers are eager to take over.

RSI is on the move up to reflect bullish momentum and has some room to climb before reaching the overbought area.

There are no major reports due from both the UK and US economies today, although it’s worth noting that risk-off flows have been favoring the US currency lately.

Earlier in the week, the ISM services PMI turned out stronger than expected, with the price index hinting at more interest rate hikes from the Fed. The PPI report due on Friday could have more insights on underlying inflationary pressures and what the central bank’s next tightening moves might be.

Weaker than expected US producer price inflation could allow the GBPUSD uptrend to resume, as traders could pare expectations for another 0.75% hike in December. On the other hand, strong data could convince dollar bulls to charge and possibly trigger a channel breakdown for the pair.

Economic data from the UK has been somewhat upbeat, though, with the BRC retail sales monitor and PMI surveys pointing to a rebound in economic activity.