Daily Analysis GBPUSD - 2 Aug 2023

The recent gloomy prints of the UK's inflation data have created challenges for the Bank of England (BoE) hawks in their efforts to control high inflation amidst sluggish economic activities and workforce issues. Additionally, the British Pound (GBP) is facing difficulties due to the ruling Tory Party's latest disappointment, having lost some key seats in the by-elections.

The market's cautious sentiment before the upcoming BoE Monetary Policy Meeting, scheduled for release on Thursday, is posing difficulties for pair traders as they grapple with mixed feelings. Even though the UK central bank is expected to announce a 0.25% rate hike, uncertainties arise if the "Old Lady," as the BoE is informally referred to, decides to pause the rate increase, or adopts a dovish stance. In such a scenario, the EUR/GBP will likely experience further upside movement.

The GBP/USD found support at the 1.2750 level, showing a possible comeback toward 1.2800, as the dollar appears weak today.

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