GBP/USD falls back from rise above 1.3434

Yesterday the drop in the wider US dollar saw the GBP/USD rise above 1.34 into the 4pm London fix. Eventually that led to a rise above the highs seen last week, when the Pound had peaked at 1.3424. It then lifted above the 2024 high, at 1.3434. However, the break such as it was only extended to 1.3444 ahead of the US close. The GBP/USD closed in the US last night at 1.3441. It has backed off today and fallen below 1.34. The lack of follow-though above 1.3434 is surprising, but then again it could have been little more than a case of stops being tripped above 1.3434 and not much else at this stage. The low see so far today has been set at 1.3394. There is no doubt that move above 1.3434 yesterday was all about dollar month-end outflow and we shall just have to see if today delivers more of the same. The GBP/USD is right now at 1.3401