Daily Analysis GBPUSD - 15 Aug 2023

The British Pound (GBP) experienced a consolidation breakout following a report from the United Kingdom's Office for National Statistics. The report revealed a significant increase in jobless benefits and substantial layoffs within the labor market. This led to the GBP/USD pair extending its upward movement due to a notable rise in the labor cost index. As a result, the possibility of more interest rate hikes from the Bank of England (BoE) is now on the table.

The Unemployment Rate reached a fresh nine-month high of 4.2%, highlighting the challenges in the UK's labor market. The report underscores the potential consequences of the BoE's aggressively tight interest rate policy. Notably, persistent inflation and layoffs are driven by labor shortages and elevated food prices.

The labor market's weak performance contrasts with a healthy growth rate. This shift prompts investors to turn their attention to July's inflation data, which is set to be released on Wednesday at 06:00 GMT. This data will likely shed light on the trajectory of inflation and its potential impact on the economy.

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