• GBP/USD picks up bids to seven-week high marked the previous day.
• Fed’s 0.25% rate hike failed to please bulls amid fears of policy pivot, banking turmoil.
• Strong UK inflation, UK PM Sunak’s Brexit success adds strength to the Cable pair’s run-up.
• BoE is all set for 0.25% rate hike but looming bank fallouts, UK’s political chaos may test the bulls.

GBP/USD renews intraday high near 1.2310 as it rises towards the seven-week high, marked the previous day, while bulls keep the reins ahead of the Bank of England’s (BoE) monetary policy announcements. Adding strength to the Cable pair’s run-up towards the 10-month-old resistance line near 1.2350 is the Brexit optimism and the Federal Reserve’s (Fed) dovish hike, as well as the downbeat US Treasury bond yields.

British Prime Minister Rishi Sunak’s victory in getting the Brexit bill passed through the House of Commons, despite major criticism from Tory rebels seem to underpin the GBP/USD upside. "Rishi Sunak has escaped an overly damaging Commons rebellion over his revised plan for post-Brexit Northern Ireland trade, winning a vote on the measure with 22 of his own MPs voting against the deal,” said The Guardian.

Also keeping the Cable buyers hopeful could be the hawkish hopes from the BoE, especially after the previous day’s strong UK inflation data. That said, Britain’s headline inflation, namely the Consumer Price Index (CPI), rose to 10.4% YoY in February versus 9.8% expected and 10.1% prior while the Core CPI rose to 6.2% compared to 5.8% market forecasts and previous readings.