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.

EUR/USD keeps the bearish bias near 1.1650

EUR/USD comes under renewed pressure on turnaround Tuesday, giving back part of its post-CPI bounce and easing toward the 1.1650 area as US markets draw to a close. In the background, the US Dollar is edging higher as markets continue to digest December’s inflation data and gear up for Wednesday’s Retail Sales and Producer Prices.

GBP/USD attempts some consolidation around 1.3430

GBP/USD trades on the back foot at the end of the NA session on Tuesday, hovering around the 1.3430 zone against the backdrop of the resumption of the buying interest in the Greenback. Moving forward, the BoE’s Taylor and Ramsden are due to speak on Wednesday.

Gold turns negative below $4,600

Gold gives back early gains on Tuesday after printing fresh record highs above $4,630 per ounce, easing back below the $4,600 mark amid humble losses for the day. The pullback comes amid the stronmger Greenback and despite US Treasury yields heading south.

Privacy coins set to take the lead in 2026 as regulation accelerates demand for on-chain anonymity

The segment of privacy coins outperforms the broader cryptocurrency market, with a roughly 290% rise in 2025. The rising user count on the cryptocurrency tumbler Tornado Cash amid regulatory pushes, such as the 2025 GENIUS Act, reflects a surge in demand for privacy.

More pressure on the Federal Reserve emerges

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank.

XRP consolidates above $2.00 as on-chain and derivatives activity decline

Ripple (XRP) is trading sideways above support at $2.00 at the time of writing on Tuesday. Recovery has remained elusive despite steady inflows into spot Exchange Traded Funds (ETFs), which have cumulatively attracted $1.23 billion.