Daily Analysis GBPUSD - 19 July 2023

UK inflation in June showed a significant cooling, falling below consensus expectations at an annual rate of 7.9%. Economists had anticipated a higher rise of 8.2% based on the previous month's reading of 8.7%, indicating that price increases are still well above the Bank of England's target of 2%. On a monthly basis, the headline consumer price index rose by only 0.1%, lower than the expected 0.4%. Core inflation, excluding volatile items, remained high at an annualized rate of 6.9% but decreased from the 31-year high of 7.1% seen in May. The Office for National Statistics attributed the drop in the annual CPI rate to declining motor fuel prices, while food prices experienced a smaller increase compared to the same period last year.

The GBP/USD is currently undergoing a correction toward the support level of 1.3000. However, this correction has been more substantial than anticipated, and it is pushing the pair toward the lower support level of 1.2850.

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