Hi Dan, throughout the day and night your liver trickles small amounts of glucose into your bloodstream. This is to provide you with energy at times when you are not eating, inorder to keep things like your heart, lungs and digestive system working (and your brain!). As you wake in the morning, it will often give you a 'boost' of glucose as you awake, in order to prepare you for the day, and this may be the reason why you are seeing a rise in levels over what you went to bed on - it's known as 'dawn phenomenon'. Usually, having something to eat will 'switch off' this extra glucose. Many people find having a protein based breakfast is best, something like scrambled eggs, as this will not raise your levels further. Do you test as soon as you get up, or a bit later e.g. before breakfast?
As you adapt to your new regime, hopefully your waking levels will improve and you shouldn't need insulin at this stage. What are your levels like through the day?