Daily Analysis GBPUSD - 7 July 2023

The negative shift in risk sentiment on Wednesday strengthened the USD and caused GBP/USD to end the day with losses. The UK Debt Management Office conducted an auction, selling £4 billion of government bonds with a high yield since 2007. This boosted GBP and limited its losses. Bank of England Governor Andrew Bailey expects a significant fall in inflation, while UK businesses' projected CPI inflation decreased slightly. Market participants are waiting for employment data to assess the likelihood of further rate hikes by the Federal Reserve. If the data shows a decline in employment and job openings, it could lead to selling pressure on the USD.

GBP/USD halted its movement around the 1.1250 level, awaiting the Non-Farm Payrolls (NFP) data along with other major currency pairs to determine its next direction. Currently, GBP/USD appears to have a more optimistic outlook, given the robust yield and the market's anticipation of an interest rate hike terminal rate of 6.5%. If the pair continues to rise, the next obstacle will be at 1.2850, while a selloff may find support at 1.2640.

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