GBP/USD extend the drop to 1.3250

GBP/USD remains entrenched in the negative territory on Tuesday, now dropping further to session lows in the mid-1.3200s.

GBP/USD weaker on USD-buying, data

The pair continues to erode yesterday’s advance and is now shedding around a cent since overnight tops in the mid-1.3300s as GBP continues to suffer the poor results from UK’s inflation figures during the month of August.

Collaborating with the downside, the greenback has reverted its negative start of the week and is now clinching session highs in the 95.30 area when tracked by the US Dollar Index, as swelling speculations on the timing of the Fed’s rate hike continue to dictate the sentiment around the buck.

GBP/USD levels to consider

As of writing the pair is retreating 0.62% at 1.3253 with the next support at 1.3213 (20-day sma) followed by 1.3152 (support line off July’s top) and finally 1.3121 (low Aug.30). On the flip side, a breakout of 1.3447 (high Sep.6) would aim for1.3481 (high Jul.15) and then 1.3646 (38.2% of the post-Brexit down move).