Daily Analysis GBPUSD - 10 July 2023

The Pound Sterling (GBP) is experiencing selling pressure as market participants adopt a cautious stance in anticipation of a speech by Bank of England (BoE) Governor Andrew Bailey on Monday at 15:00 GMT. The bias for the GBP/USD pair has weakened as investors are concerned about the possibility of additional interest rate hikes by the BoE.

The economic outlook for the United Kingdom is at risk as households already bear the burden of high-interest payment obligations, and further policy tightening would increase the vulnerability of domestic activities. Alongside Bailey's speech, investors will also closely watch Britain's employment data, seeking clarity on labor market conditions that could provide insights into future interest rate guidance.

GBP/USD touched the highest level on 16 Jun again and continued to show how GBP is well-performing, especially with the BOE terminal rate close to 6.5%. A correction now seems more probable toward the 1.2770 after the Jump on Friday. CPI on Wednesday may create a lot of volatility. A breakout of the actual resistance level will take the price toward the 1.3000 round number.

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