Sterling Heads Towards Seven-Month Low with Ongoing Geopolitical Tensions

The Pound Sterling is declining toward a seven-month low as Israel-Palestine tensions dampen the market mood. Labor demand in the UK has started facing the repercussions of poor business activity. A steady interest rate decision is anticipated from the BoE to avoid a recession. 

The Pound Sterling (GBP) continues to face intense selling pressure as dismal market sentiment due to escalating tensions in the Middle East combines with a poor economic outlook for the United Kingdom. The GBP/USD pair continues its losing streak for the third trading session in a row as labor market conditions and business activity in the UK region are deteriorating due to a decline in new business orders. 

A string of weak economic indicators from the UK economy have dented expectations of more interest rate hikes from the Bank of England (BoE). The central bank is expected to keep interest rates unchanged at 5.25% to avoid further economic casualties. The BoE is widely anticipated to keep interest rates unchanged as a further increase in borrowing costs could push the economy into a recession.  

GBPUSD is approaching the critical support level at 1.2070, while it awaits today's developments for further guidance. The pair is bearish and more selloffs can come with the actual strength of the dollar and the weakness of the pound. 

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2450	1.2300	1.2200	1.2000	1.1900	1.1800