Daily Analysis GBPUSD - 9 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.

The UK manufacturing sector in June will face close examination. The performance of British factories and the preliminary GDP for the April-June quarter will be closely monitored due to the strict policy environment. Observers are curious about whether the economy can steer clear of a recession. In the meantime, reports from the BoE Pill and the National Institute of Economic & Social Research (NIESR) suggest that UK PM Rishi Sunak will indeed deliver on his commitment to reduce inflation to 5% by the close of 2023.

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