Daily Analysis GBPUSD - 20 July 2023

In the UK, the Consumer Price Index (CPI) rose slightly below expectations, indicating softer inflation. This could influence the Bank of England (BoE) to consider a smaller rate hike in the upcoming policy meeting. In the US, Housing Starts declined in June, and Building permits also saw a drop, leading to speculations that the Federal Reserve (Fed) might adopt a more dovish policy stance. Investors are closely watching upcoming data, including Unemployment Claims and Retail Sales in the US, as well as Flash Manufacturing and Services PMI figures from both countries, which will impact the GBP/USD pair's direction.

The GBP/USD is continuing its correction towards the 1.2850 support level. A first rejection of this level has occurred, and a breakout may lead the price toward the next target of 1.2750.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.3310	1.3200	1.3000	1.2850	1.2750	1.2650