GBP/USD off earlier lows as EUR/GBP steps back again

Yesterday, as earlier noted, the FTSE 100 seemed to absorb the new measures and spending cuts announced by the UK Chancellor. However, it was not quite the same story for the Pound. The GBP/USD continued to fall back, but of course much of that was due to a rebound in the dollar and a relapse in the EUR/USD. That led the GBP/USD below 1.29 and the break below that level was covered here at the time. So, the GBP/USD closed in the US last night at 1.2888. That close and the further fall in the EUR/USD earlier today pushed the GBP/USD down to a fresh interim low at 1.2871, but it has rebounded since and reclaimed levels back above the 1.29 handle. The high seen so far has been set at 1.2929. The rebound has also been facilitated by a push lower in the EUR/GBP. That is back near the lows seen yesterday, before the UK Chancellor managed to push it higher. The GBP/USD is currently trading at 1.2914, but its immediate path from here on today will be very much hostage to how the dollar that the Euro cross rate behave as the session unfolds.  Also and potentially important to note; today is spot month end too.