• +0.05% after closing down 0.7% on a sharp, broad-based dip in inflation

• Yield spreads expanded a touch, 10yr gilt +8bp 4.230%, 10yr UST +9bp 4.537%

• A quiet day for UK data and the BoE - the USD and risk appetite to lead GBP

• Charts; momentum studies rise, 5, 10, and 21-day moving averages climb

• 21-day Bollinger bands expand - signals favour a move higher

• 1.2590 50% retracement of the July-October fall is a longer-term target

• The close below pivotal 1.2442 200 DMA undermines the topside bias

• 1.2327, 38.2% of Oct/Nov rise, and this week's 1.2506 top are key levels

For more click on FXBUZ