Daily Analysis GBPUSD - 21 July 2023
Investor expectations for the number of interest rate hikes from the Bank of England experienced a rapid decline. Expectations fell sharply following the release of UK inflation data that was weaker than the market was anticipating at 7.9% year-on-year.
The market now sees a roughly 40% chance the Bank goes with a 50-basis point hike at its next meeting on August 03 in light of decelerating inflation.
UK headline inflation undershot expectations when it read at 7.9% on Wednesday, below the market's consensus of 8.2% with all sub-components also undershooting.
The GBP/USD stopped at the targeted 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 |