GBP/USD slips to fresh session lows on May comments

Eren Sengezer FXStreet

After spending the last couple of hours consolidating its daily losses around 1.2970 handle, the GBP/USD came under a renewed selling pressure following the recent comments from UK Prime Minister Theresa May and refreshed its session low at 1.2957. As of writing, the pair was trading at 1.2962, losing 0.28% on the day.

In the late NA session, Theresa May crossed the wires, stating that based on the latest investigation, the terror threat level in the U.K. has been raised to "critical," suggesting the possibility of further attacks in near-term. She further added that armed military personnel has been deployed across the country to increase the security.

On the other hand, fueled by the Trump administration's budget plan, the bullish sentiment surrounding the greenback allowed the US Dollar Index to make a strong rebound on Tuesday, reaching its daily high at 97.32. At the moment, the index is at 97.28, up 0.4% on the day. Furthermore, Philly Fed President Harker's hawkish tone supported the greenback after he said that the Fed could go for two more rate hikes this year and the labor market has very little slack left.

US Dollar hovers around daily highs above 97

Technical levels to consider

With a break above 1.30 (psychological level), the pair could aim for 1.3050 (May 18 high) and 1.3120 (Sept. 22 high). To the downside, supports could be seen at 1.2940 (May 19 low), 1.2845 (May 12 low) and 1.2800 (psychological level).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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