Daily Analysis GBPUSD - 14 July 2023

The US Dollar (USD) remains under selling pressure, resulting in a 15-month low, as the market anticipates the Federal Reserve (Fed) concluding its policy tightening cycle. On the other hand, the British Pound (GBP) gains support amid speculation of further interest rate hikes by the Bank of England (BoE) to tackle inflation. This supports the GBP/USD pair's upward trend. Market sentiment indicates that the Fed will keep interest rates steady after an anticipated increase in July, while the BoE may raise rates to control demand and lower inflation. Economic data and consumer sentiment will influence the currency pair, but overall, the GBP/USD pair is set for strong gains and looks to end the week positively for the second consecutive time.

Similar to other major currency pairs, the GBP/USD faced resistance at 1.3150 after surpassing the significant level of 1.3000. A correction towards 1.3000 appears to be more likely. The next long-term resistance level is 1.3210, and additionally, we observe the 200MA on the weekly chart, where a candle closing above it is needed to confirm further upward movement.

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