- US Dollar soars across the board amid higher yields.
- GBP/USD fails to hold to gains, down for the second-day in-a-row.
The GBP/USD pair dropped further falling below Monday and Asian session’s lows. It bottomed at 1.2859, the lowest since October 30. Before the US session, it climbed to 1.2920.
US Data lifts Greenback
In the US, the report from the Institute for Supply Management (ISM) on Tuesday showed activity in the non-manufacturing sector rose more-than-expected in October. The index came in at 54.7, above the 53.5 of market consensus and the 52.6 of September.
The Greenback rose across the board after the report, even against commodity and emerging market currencies. The DXY is testing last week highs near 98.00. Higher US yields are supporting the rally. The 10-year yield is at 1.869%, the highest level since October 16.
Short-term technical outlook
Cable holds a bearish tone after being rejected again from near 1.2970. The decline found support so far around 1.2860, a relevant short-term level. If the pair breaks below attention would turn to the 1.2800 zone that capped the downside over the last two weeks.
On the upside, a recovery above 1.2900/05 (horizontal level / 20-SMA in the 4-hours chart) would likely alleviate the bearish pressure. Above the next resistance is seen at 1.2925.
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