- The pound cuts gains against the dollar, but remains firm in the market.
- GBP / USD once again can’t handle 1.3830 / 35.
GBP / USD cut gains and fell after hitting 14.3829, the highest since last Thursday. The pair is trading around 1.3800, after losing momentum in the face of a general rise in the dollar. Still, the pound remains among the top performers on Tuesday.
The Bank of England’s Monetary Policy Expectations, along with the EUR / GBP falling to year lows, they gave a boost hours ago to the currency, which happened to be among those that increased the most on Tuesday.
The dollar received a boost from the latest US data that turned out better than expected. Consumer confidence rose unexpectedly in October while new home sales advanced above expectations.
The DXY returned to positive territory, approaching 94.00, while Treasury bond yields rebounded. The 10-year benchmark rate rose from 1.61% to 1.64%. These movements detracted from GBP / USD.
The pair is back below 1.3800 and trimmed gains. Most technically relevant is that it failed to break the key barrier of 1.3830 / 35, which slowed the raises last week. The confirmed break of that zone will leave the pound to extend the rises against the dollar. The ongoing pullback has support at 1.3780 and 1.3755.
Technical levels
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