GBP/USD quickly reverses a dip to sub-1.40 level

Haresh Menghani FXStreet

• GBP weighed down by renewed UK political woes.
• Reviving USD demand adds to the bearish pressure.
• Bulls showing resilience below 1.40 handle.

The GBP/USD pair reversed a dip to sub-1.4000 level and quickly rebounded around 50-pips from session lows, touched in the last hour.

The pair extended its retracement slide from closer to mid-1.4300s, fresh post-Brexit highs, and momentarily dropped below the key 1.40 psychological mark during the early European session on Tuesday.

Against the backdrop of reviving US Dollar demand, backed by the recent upsurge in the US Treasury bond yields, another UK political crisis, wherein Theresa May is facing renewed pressure to quit as PM, kept the British Pound on the defensive.

Bulls, however, showed resilience below the 1.40 handle and seemed to have prompted some short-covering move. The pair has now recovered back to the 1.4030-40 region as investors now look forward to the release of CB's Consumer Confidence data and the BOE Governor Mark Carney's testimony before the House of Lords Economic Affairs Committee for some fresh impetus.

Technical levels to watch

Any subsequent up-move is likely to confront fresh supply near the 1.4070-75 region and is followed by a strong support break-point, now turned important hurdle, near the 1.4100 handle.

On the flip side, bulls might continue to try and defend the 1.40-1.3990 support area, which if broken decisively is likely to accelerate the fall towards 1.3930-25 horizontal support en-route the 1.3900 round figure mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD drops toward 1.3500 after weak UK jobs data

GBP/USD extends losses toward 1.3500 in European trading hours on Tuesday. The UK ILO Unemployment Rate held steady at 4.9% in the three months to June, against a forecast of 4.8%, while Employment Change arrived at 83K in the same period versus 147K previous. Weak UK labor data keep the British Pound under pressure, driving the pair lower.

EUR/USD flat lines below two-month high amid oil-driven inflation fears

The EUR/USD pair holds steady around the 1.1575-1.1580 region during the Asian session, and for now seems to have stalled the previous day's modest pullback from a two-month top. However, a modest US Dollar uptick warrants some caution before positioning for the resumption of the recent move higher from the 1.1350 area, or the July monthly swing low.

Gold remains depressed below $4,400 amid oil-driven inflation fears

Gold sticks to modest intraday losses below the $4,400 mark heading into the European session on Tuesday, and seems to have snapped a two-day winning streak. The US Dollar builds on the overnight bounce from a two-month trough as inflation risks stemming from higher oil prices underpin prospects for at least one interest rate hike by the US Federal Reserve in 2026.

Ripple and Stellar remain under bearish pressure as corrective declines cap upside

Ripple and Stellar remain under pressure as broader market uncertainty and weak technical momentum weigh on both altcoins. XRP is hovering below the key $1 mark on Tuesday while XLM continues its corrective decline below $0.157. Meanwhile, mixed derivatives and on-chain signals indicate cautious sentiment, leaving both cryptocurrencies vulnerable to further downside.

Silver’s new era: Supply deficits meet exploding industrial demand

Silver has experienced a wild ride in 2026, but The Silver Institute President and CEO Michael DiRienzo says investors shouldn’t let the volatility obscure a much bigger story: the underlying silver market remains remarkably strong.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.