DXY rises 0.30 percent to test June highs.
Cable is under pressure, and a break below 1.3800 might lead to a test of June lows.
During the American session, the GBP/USD failed to hold gains and fell to 1.3800 against a stronger US dollar. The dollar, on the other hand, rose due to end-of-month flows.
Cable is under pressure, with prices hovering just over the 1.3800 level. The dollar remains strong, with the USD/JPY at 111.00 and the DXY up 0.40 percent to its highest level since April, despite falling US yields and mixed Wall Street outcomes. The dollar’s strength is aided by end-of-month flows.
According to ADP, private payrolls in the United States increased by 692,000 in June, which was higher than projected. The non-farm payroll report is due on Friday. In May, pending home sales increased by 8%.
A drop below 1.3800 in the GBP/USD would expose the June low of 1.3785 from a technical standpoint. The next level of support is at 13720. While under 1.3880, the negative tone is expected to persist (short-term downtrend line)./n
