GBP/USD Faces Sell-Off Due to Israel-Hamas Conflict

The Pound Sterling (GBP) faced a sell-off due to the Israel-Hamas conflict, causing a drop in the GBP/USD pair. The Federal Reserve's expected interest rate hike and the Bank of England's reluctance to change interest rates to avoid a UK recession added to the negative sentiment.

The UK's economic prospects are weakening as inflation remains high, leading to reduced demand and labor demand. The Bank of England plans to maintain high-interest rates until inflation reaches 2%, contributing to the vulnerability of the situation.

In addition to the Israel-Hamas conflict, the global market mood has been downbeat.

Higher interest rates have negatively affected the UK's Manufacturing and Construction PMI, with the Construction PMI falling to 45.0 in September. Investors are also keeping an eye on the UK's Financial Policy Committee (FPC) meeting minutes and factor activity data for August.

GBP/USD is experiencing a similar price accumulation as the dollar will be dictating direction. The next resistance level to watch is at 1.2300, and the support level is at 1.0050.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2400	1.2300	1.2200	1.2110	1.2000	1.1900