Daily Analysis GBPUSD - 27 July 2023

On Thursday, the pound sterling (GBP) experienced a slight corrective movement amid growing fears of a recession in the United Kingdom's economy, which has raised concerns about the Bank of England's (BoE) aggressive policy tightening. The GBP/USD pair is under pressure, but overall sentiment towards the Pound Sterling remains bullish. This optimism is fueled by the possibility of further interest-rate hikes by the UK central bank, aimed at bringing inflation back to its target level.

The UK's Treasury Advisers have expressed worries about economic growth due to the BoE's aggressive policy tightening, which has placed a heavy burden on businesses. Additionally, the country's housing sector is grappling with the impact of higher borrowing costs, leading to a sharp decline in demand from first-time home buyers.

The GBP/USD is on a bullish trend toward the next resistance of 1.3000. A breakout of this level will take the price toward 1.3150.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.3220	1.3150	1.3000	1.2800	1.2750	1.2650