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.

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


Today last price 1.243
Today Daily Change -0.0085
Today Daily Change % -0.68
Today daily open 1.2515
Daily SMA20 1.2607
Daily SMA50 1.269
Daily SMA100 1.2899
Daily SMA200 1.2889
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



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD extends gains toward 1.31 after upbeat UK wage figures

GBP/USD is extending its gains and advancing toward 1.31 after UK wage figures beat expectations with 3.2% annually. The unemployment rate remained at 3.8% in November. 


EUR/USD recaptures 1.11 amid upbeat German figures, USD weakness

EUR/USD is trading above 1.11 after the German ZEW Economic Sentiment beat with 26.7 points. Presidents Trump and Macron agreed not to slap tariffs on each others' countries. The US dollar is retreating.


Market delays the trip to the moon

The crypto markets continue to turn to a new bullish phase. This turnaround began at the beginning of the year after a consolidation phase that started in mid-2019. 

Read more

Gold retreats from 2-week tops, drifts into negative territory

Gold failed to capitalize on its early uptick to near two-week tops and dropped to fresh session lows, around the $1560 region in the last hour.

Gold News

USD/JPY: Weaker near 110.00 amid China virus fears, BOJ's status-quo

The Japanese yen retains the bid tone following the Bank of Japan's (BOJ) status-quo, keeping USD/JPY under pressure near the 110 level amid risk-off market profile. S&P 500 futures drop 0.40% while the US Treasury yields are down over 1.50%, as the sentiment is hit by the coronavirus outbreak.