GBP/USD slumps to 27-month lows near 1.2400

Labour market data from the UK weigh on the British pound on Tuesday.
Greenback gathers strength ahead of retail sales data and Fedspeak.

Eren Sengezer FXStreet

The GBP/USD pair lost more than 100 pips on Tuesday slumped to its lowest level since April 2017 at 1.2407. Following the sharp drop, the pair staged a technical correction and was last down 0.7% on a daily basis at 1.2430.

Earlier today, the data published by the UK's Office for National Statistics showed that the claimant count rate in June rose to 38K in June from 24.5K in May and came in worse than the market expectation of 22.8K. Although further details of the report revealed that the average earnings, including bonuses, expanded by 3.4% in May following April's reading of 3.2% and the unemployment rate remained unchanged at 3.8%, the British pound struggled to find demand.

Additionally, the broad ongoing USD recovery ahead of key retail sales data, which is expected to increase by 0.1% on a monthly basis in June, keeps the bearish pressure on the pair intact. At the moment, the US Dollar Index is up 0.33% on the day at 97.24.

Later in the session, FOMC Chairman Powell and FOMC members Bostic, Bowman, and Evans will be delivering speeches.

Technical levels to watch for

GBP/USD

Overview
Today last price	1.243
Today Daily Change	-0.0085
Today Daily Change %	-0.68
Today daily open	1.2515

Trends
Daily SMA20	1.2607
Daily SMA50	1.269
Daily SMA100	1.2899
Daily SMA200	1.2889

Levels
Previous Daily High	1.2579
Previous Daily Low	1.251
Previous Weekly High	1.258
Previous Weekly Low	1.244
Previous Monthly High	1.2784
Previous Monthly Low	1.2506
Daily Fibonacci 38.2%	1.2537
Daily Fibonacci 61.8%	1.2553
Daily Pivot Point S1	1.249
Daily Pivot Point S2	1.2465
Daily Pivot Point S3	1.2421
Daily Pivot Point R1	1.256
Daily Pivot Point R2	1.2604
Daily Pivot Point R3	1.2629

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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