Daily Analysis GBPUSD - 11 Aug 2023

On the other side of the globe, the UK economy experienced an unexpected growth of 0.2% in Q2 2023, a surprise that caught economists off guard. This growth has positioned the Bank of England (BoE) to consider further interest rate hikes. However, unlike other major advanced economies like Germany, France, Italy, and the US, the UK has yet to fully recover its pre-COVID late-2019 level. Notably, manufacturing and business investment saw remarkable growth in Q2, the manufacturing sector marking its strongest quarter since early 2019. Despite this positive momentum, the UK economy still lags behind by 0.2% from its late 2019 level. Economists foresee potential challenges ahead that might lead to a mild recession later in the year despite recent resilience.

The GBP/USD found support at 1.2650 and forming a double bottom while the next resistance level is at 1.2820 and the support will be again 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