Daily Analysis GBPUSD - 10 Aug 2023

The Financial Times reported UK Prime Minister Rishi Sunak's potential move to restrict investments in the Chinese tech sector, similar to Joe Biden's action. This is notable as Sunak seeks political support after recent by-election setbacks. The National Institute of Economic and Social Research (NIESR) indicated the UK's economy might recover to pre-pandemic levels by Q3 2024. NIESR also discussed recession risk, inflation expectations, and potential Bank of England actions. Market sentiment remains uncertain due to factors including US-China tension, global economic concerns, and central bank actions. Despite this, US stock futures and yields are improving, influenced by upcoming US data. The US Consumer Price Index's positive performance in July could ease concerns about the Federal Reserve's interest rate plans after disappointing Nonfarm Payrolls data.

The GBP/USD found support at the 1.2650 level and formed a pennant pattern while the next resistance level is at 1.2820 and the support will be again the 1.2650.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.3220	1.3150	1.3000	1.2650	1.2600	1.2400