GBP/USD slumps to fresh daily lows near 1.3800 on renewed USD strength

GBP/USD reversed its direction in the second half of the day.
US Dollar Index rises above 92.50 on Tuesday.
Risk-averse market environment is helping USD find demand.

Eren Sengezer FXStreet

After edging higher toward 1.3900 during the European session, the GBP/USD pair came under renewed bearish pressure in the second half of the day and was last seen losing 0.26% at 1.3809.

DXY capitalizes on risk-off flows

The renewed USD strength in the American session seems to be weighing on GBP/USD. The negative shift witnessed in the market mood is helping the USD find demand as a safe haven. Currently, the US Dollar Index (DXY) is up 0.3% at 92.52. Reflecting the risk-averse environment, the Dow Jones Industrial Average and the S&P 500 indexes are down 1.3% and 0.75%, respectively.

Earlier in the day, the data published by the Institute for Supply Management (ISM) showed that the business activity in the US service sector continued to expand in June with the PMI arriving at 60.1. However, this reading came in weaker than May's print of 64 and missed the market expectation of 63.5.

On the other hand, the data from the UK revealed on Tuesday that the Markit Construction PMI improved to 66.3 in June from 64.2. Nevertheless, this data had little to no impact on the British pound's performance against its major rivals.

There won't be any data releases from the US in the remainder of the day and the USD's market valuation is likely to continue to impact GBP/USD's action.

Technical levels to watch for

GBP/USD

Overview
Today last price	1.3809
Today Daily Change	-0.0036
Today Daily Change %	-0.26
Today daily open	1.3845

Trends
Daily SMA20	1.3955
Daily SMA50	1.4027
Daily SMA100	1.3951
Daily SMA200	1.3655

Levels
Previous Daily High	1.3862
Previous Daily Low	1.3817
Previous Weekly High	1.394
Previous Weekly Low	1.3732
Previous Monthly High	1.4249
Previous Monthly Low	1.3787
Daily Fibonacci 38.2%	1.3845
Daily Fibonacci 61.8%	1.3834
Daily Pivot Point S1	1.3821
Daily Pivot Point S2	1.3797
Daily Pivot Point S3	1.3776
Daily Pivot Point R1	1.3866
Daily Pivot Point R2	1.3886
Daily Pivot Point R3	1.391

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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