GBP/USD tumbles hitting fresh lows under 1.3800 as the US dollar jumps across the board

• Dollar soars, Dow Jones drops more than 1%, and US yields tumble.
• GBP/USD extends reversal from weekly highs, falling almost a hundred pips from the top.

The GBP/USD fell to 1.3795, hitting the lowest level since Friday. Cable continued to decline after reversing its trend near 1.3900 amid a rally of the greenback.

The US dollar accelerated to the upside after the beginning of the American session, even amid weaker-than-expected economic data from the US. The ISM June Service Sector fell to 60.1, the lowest since January. On Wednesday, the FOMC minutes will be released.

Over the last hours, stock in the US turned decisively to the downside. The Dow Jones is falling by 1.21%. At the same time, US yields are collapsing. The 10-year fall more than 5% as it stands at 1.35%, the lowest since February. The pound not only weakened versus the US dollar but also against its main European rivals. EUR/GBP rose to fresh daily highs above 0.8560.

Testing 1.3800

The GBP/USD remains under pressure and is testing the 1.3800.  A consolidation below would clear the way to more weakness. The next support stands at 1.3775, followed by 1.3750. On the upside, resistance might be seen at 1.3835 and 1.3860.

Technical levels