Daily Analysis GBPUSD - 12 July 2023

The Pound Sterling (GBP) faced resistance near a 15-month high at 1.2970 due to strong labor cost data in the UK. The GBP/USD pair gained strength as the possibility of a significant interest rate hike by the Bank of England (BoE) increased. UK firms are offering higher wages to attract talent amidst labor shortages. Although the jobless rate has risen, firms are avoiding credit due to higher interest rates. The BoE is likely to consider a rate hike as higher wage pressures can counterbalance the impact of rising unemployment.

As GBP/USD is close to reaching the historical level of 1.3000 with strong momentum for short- and long-term reading. Today CPI Data from the US may be positive or negative for the pair so watching the support and resistance levels will be crucial as volatility will be high.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.3310	1.3200	1.3000	1.2650	1.2540	1.2460