Daily Analysis GBPUSD - 8 Aug 2023

The potential for further appreciation of the pound sterling (GBP) appears limited due to the Bank of England (BoE) raising interest rates. This move is putting additional strain on various sectors in the United Kingdom, such as housing, employment, and manufacturing. The GBP/USD pair is facing downward pressure because BoE policymakers are indicating the possibility of more tightening measures to bring inflation back to the 2% target.

BoE's Pill expresses confidence that the UK's inflation will ease to 5% within the current year, and the anticipated rate will be reached in the first half of 2025. However, there is a risk that as the British economy strives for 2% inflation, it might enter a recession. Moving ahead, the focus will be on the Q2 Gross Domestic Product (GDP) data.

The GBP/USD found support at the 1.2650 level waiting for GDP 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