The GBP/USD pair came under renewed bearish pressure in the early European session amid risk aversion on Tuesday.
The pair declined toward 1.2000 before staging a modest rebound. The data from the UK showed that the ILO Unemployment Rate remained unchanged at 3.8% in June.
The pair faces the next significant support at the 1.2000/1.1990 area (Fibonacci 61.8% retracement of the latest uptrend, psychological level). In case this level fails, sellers could take action and drag GBP/USD toward 1.1940 (static level) and 1.1900 (psychological level).
On the upside, strong resistance seems to have formed at 1.2050 (Fibonacci 50% retracement, 200-period SMA on the four-hour chart). With a four-hour close above that level, sellers could move to the sidelines and allow the pair to recover toward 1.2100 (psychological level, Fibonacci 38.2% retracement) and 1.2130 (100-period SMA).
The US Dollar Index, which tracks the greenback’s performance against a basket of six major currencies, was last seen rising 0.26% on the day at 106.75. Meanwhile, US stock index futures trade flat, pointing to a neutral market mood so far on the day.
