- GBP/USD declined on Tuesday as sterling was weighted down after dollar was bolstered after U.S. job openings jumped to a record high in June.
- The job market data underscored the view that the Federal Reserve has ammunition to continue on its tighter monetary policy path. A strong jobs report last Friday gave the dollar index.its strongest daily performance this year.
- Tuesday's strong job openings data helped the dollar shake off some the weakness it experienced on Monday following dovish comments from St. Louis Fed President James Bullard and Minneapolis Fed President Neel Kashkari.
- The ongoing weakness is set to continue for this pair as the resistance level at 1.3067 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
- To the upside, immediate resistance can be seen at 1.3000, a break above this level would expose the cable to next resistance level at 1.3067 levels.
- To the downside strong support can be seen at 1.2947, a break below at this level will open the door towards next level at 1.2906.
Resistance Levels
R1: 1.3000 (50 % Retracement level)
R2: 1.3067 (61.8 % Retracement level)
R3: 1.3100 (Psychological levels)
Support Levels
S1: 1.2947 (38.2 % Retracement level)
S2: 1.2906 (July 4th lows)
S3: 1.2870 (23.6 % Retracement level)
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