Daily Analysis GBPUSD - 9 June 2023

Investors are offloading positions in the US Dollar following a significant increase in US weekly jobless claims, which rose by 28K to reach 261K for the week ending June 02, surpassing the upwardly revised expectations of 235K. The release of 19-month high US Initial Jobless Claims indicates that labor market conditions are not sufficiently tight, potentially prompting the Federal Reserve (Fed) to consider a pause in their active policy-tightening cycle.

For further guidance, US inflation data will be keenly watched. Headline inflation is seen softening to 4.2% vs. the prior release of 4.9%. Core CPI that strips of oil and food prices is expected to accelerate marginal to 5.6% vs. the former release of 5.5%. If core inflation continues to remain persistent, Fed chair Jerome Powell could be more favorable for the continuation of the policy-tightening spell.

From a technical standpoint, GBPUSD experienced a surge towards 1.2560 following yesterday's data, but this upward movement may not be sustained. The movement observed yesterday could be viewed as an overreaction due to the uncertainty prevailing in the markets in the days leading up to significant upcoming events involving central banks next week. The level of 1.2500 could serve as the next support for the pair, followed by 1.2460.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2650	1.2530	1.2450	1.2370	1.2300	1.2200