POUND SOLD AS THE U.S DOLLAR MOVES HIGHER
The British pound has sold-off sharply against the greenback during the European trading session, after the U.S dollar index strengthened towards fresh 2018 trading highs. The GBPUSD pair had climbed to an intraday high of 1.3592, but quickly reversed lower back towards the 1.3500 level after the U.S dollar index firmed broadly. We have also seen further weak data from the United Kingdom economy this morning, with monthly UK house prices tumbling, ahead of Thursday’s BOE meeting.
The GBPUSD pair is now intraday bearish while trading below the 1.3542 level, further losses towards 1.3485 and 1.3460 seem likely.
If the GBPUSD pair can move back above the 1.3542 level, buyers may be encouraged to test back towards the 1.3576 and 1.3592 levels.