Daily Analysis GBPUSD - 6 July 2023

The hawkish stance of the Federal Reserve indicates that a 25 basis points increase is expected during the upcoming FOMC meeting, leading to a rise in US Treasury bond yields. Weakened risk sentiment and concerns about a global economic downturn and trade conflict between China and the US support the safe-haven US Dollar and limit the upside potential for the GBP/USD pair. The fear of aggressive interest rate hikes by the Bank of England (BoE) increasing the risk of a UK economic recession suggests a decline in the GBP/USD pair. Market participants should be cautious before extending the recent rebound. Key upcoming events include the UK Construction PMI and various US economic reports, with the highly anticipated US monthly jobs data (NFP report) being released on Friday.

Following yesterday's FOMC minutes, no significant changes were observed for the GBPUSD pair around the 1.2700 area. The downtrend line is holding the pair at a resistance level.  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