Daily Analysis GBPUSD - 14 June 2023
In April, the UK's Gross Domestic Product (GDP) displayed a growth of 0.2%, rebounding from a previous contraction of -0.3%. However, both Industrial Production and the Index of Services underperformed during the same period. Despite this, the GBP/USD pair remains attractive to bullish traders due to positive employment and inflation figures reported by Britain. Additionally, the Bank of England (BoE) has shown indications of potential rate hikes.
On the other hand, weak US inflation data, as reflected in the Consumer Price Index (CPI) and Core CPI figures for May, weighed down the US Dollar and supported buyers of the GBP/USD pair.
Although the initial reaction to the UK data did not significantly impact the Cable pair traders, the focus on the upcoming Federal Reserve (Fed) meeting limited the pair's hawkish sentiment. If Federal Chair Jerome Powell delivers an unexpectedly positive tone or if the economic forecasts are optimistic, it could prompt a reversal and bring back sellers.
GBP/USD is currently gaining bullish momentum in the short term, supported by favorable fundamentals. The pair has potential support levels at around 1.2590 and 1.2535, while resistance levels are located at around 1.2625 and 1.2670.
|
Resistance 3 |
Resistance 2 |
Resistance 1 |
Support 1 |
Support 2 |
Support 3 |
|
1.2750 |
1.2670 |
1.2590 |
1.2590 |
1.2460 |