Daily Analysis GBPUSD - 5 July 2023

The recent softening of US macroeconomic data raises concerns about the Federal Reserve's ability to continue raising interest rates and dampens bullish sentiment towards the USD. The US PCE Price Index and core gauge slowed down more than expected, while the ISM Manufacturing PMI remained in contraction territory. The market focus is on the upcoming release of the June FOMC meeting minutes, which will provide insights into the Fed's policy outlook. Worries about economic headwinds from rising borrowing costs may support the USD and limit gains in the GBP/USD pair. There are also concerns about a potential recession in the British economy following the surprise rate hike by the Bank of England. The final UK Manufacturing PMI is waiting for further direction.

The recent price movement of the GBPUSD indicates increased uncertainty shortly regarding the market's interpretation of Economic Data. There are concerns about a potential slowdown in economic activity and the possibility of a recession. However, the long-term trend remains stable, and if the price surpasses 1.2850, it could lead to further price advancements.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.3200	1.3000	1.2800	1.2650	1.2540	1.2460