Daily Analysis GBPUSD - 3 Aug 2023

The Pound Sterling (GBP) is primed for intense volatility, as the Bank of England (BoE) is widely expected to raise interest rates at its fourteenth straight meeting today.

The Bank of England (BOE) is considering a 25-basis point hike after last month's inflation rate showed some improvement, sitting at 7.9%, down from 8.7% in May. Despite the BOE's divergent stance from other central banks, high inflation levels and mixed labor and wage data may cause market apprehension about any unexpected moves similar to the half-point curve ball thrown at their previous meeting. The British economy has shown resilience, managing to avoid a recession for the time being. Traders will also keep a close eye on future guidance.

The GBP/USD at the support level of 1.2650 support area waiting for the BOE today event for direction. Any breakout may take the price down toward the next support at 1.2600.

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