Daily Analysis GBPUSD - 7 Aug 2023
The Bank of England's decision to increase interest rates has raised concerns about a deepening recession. As a result, the GBP/USD pair has experienced a notable decline due to the potential impact of higher interest rates on the UK's economic outlook. The previously robust labor market is now showing signs of weakening, with companies slowing down their hiring process amid the gloomy economic prospects.
The BoE's aggressive rate-tightening cycle is also affecting the UK's housing sector and strong labor market. However, this move is aimed at stabilizing inflation at 2%. Andrew Bailey, the head of the Bank of England, expresses confidence that inflation will ease to 5% by October, as the central bank plans to maintain "sufficiently restrictive" interest rates for an extended period.
The GBP/USD found support at the 1.2650 level waiting for today's data to find direction. A breakout of the actual support level may take the price toward 1.2600 followed by 1,2300.
|
Resistance 3 |
Resistance 2 |
Resistance 1 |
Support 1 |
Support 2 |
Support 3 |
|
1.3220 |
1.3150 |
1.3000 |
1.2650 |
1.2600 |
1.2400 |