- The dollar with mixed performance in the market on Tuesday, the pound among the best.
- GBP / USD still under downward pressure despite rebound, is approaching the 20-day average.
The GBP / USD is trading slightly higher, above the 1.3850 area. Previously, in the Asian session it fell to 1.3835, the lowest level since July 27. The rebound was up to 1.3872, but in the last hours the dollar gained momentum against the main European currencies and weakened the pair.
The pound is still one of the best performers on Tuesday anyway, rising against the euro. EUR / GBP is at a month low, which contributes to some support for the British currency.
The economic calendar ahead on Tuesday also looks calm. The US labor productivity data for the second quarter stands out. Loretta Mester of the Cleveland Fed and Charles Evans of Chicago will speak publicly. July retail inflation figures will be released in the US on Wednesday. In the UK the strong data day will be Thursday with the publication of second quarter growth and industrial production numbers.
Approaching the 20-day mean
The GBP / USD had the second consecutive daily decline yesterday, continuing the decline after failing to break above 1.4000 at the end of last month.. This drop has brought the price towards the 20-day average that looms as a key support, which is passing through 1.3830. A close well below would put the 200-day average at 1.3755 on the radar.
To regain the bullish bias firmly, the pound needs to break out with a close of 1.3930, which would point to a retest at 1.4000.
Technical levels
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