GBP/USD extends slide to 1.3122, 2-day low

• GBP/USD retreated further from weekly highs on the back of a stronger US dollar.
• Cable intraday tone turned bearish after being unable to hold on top of 1.3200.

The GBP/USD pair dropped further amid a stronger US dollar across the board after the ECB meeting. DXY Futures rebounded from 2-week lows and climbed to 94.45, the highest level since Monday.

Cable failed to hold on top of 1.3200 and extended the retreat from 1-week highs. Recently printed a fresh daily low at 1.3122 and it was hovering around 1.3145, down for the day and marginally higher from the level it closed on Friday.

The recent slide took place amid a rally of the greenback and despite a move lower of the EUR/GBP pair. The technical outlook for the very short-term weakened significantly for the pound against the US dollar.

In the US, economic data released today had little impact. The key report is due tomorrow: Q2 GDP. Regarding the UK, in a few minutes, Michel Barnier, European Commission Chief Negotiator for Article 50 Negotiations and Dominic Raab, UK Secretary for Brexit, will offer a press conference.

GBP/USD Levels to watch

To the downside, support levels might be seen at 1.3110, 1.3080 and 1.3045. On the flip side, resistance could be located at 1.3175, 1.3210/15 (Jul 26 high) and 1.3240.