GBP/USD held in check by modest dollar rebound so far today

As covered here yesterday, the failure of the Pound to really push much above the 1.3434 high set last year versus the dollar is hard to explain. The fact that the GBP/USD topped that level and only extended by a mere 10 pips is pretty unusual to be honest. Perhaps we can blame the month-end, or the modest recovery in the dollar versus Europe in recent days and a modest push higher in the dollar index (USDX)? Well, that all might be true and there is one more thing to add in that regard. The markets now expect a rate cut next week from the Bank of England (Thursday May 8) and that might be holding the topside in check. Anyway, we shall have to see how both the Pound and the dollar fare today, as it is the final day of the month. The GBP/USD topped out at 1.3444 yesterday and then dropped to a session low at 1.3381. The subsequent US close was set at 1.3409. The range seen so far today has been covered by 1.3382 and 1.3415. The GBP/USD is currently edging off that earlier session low, trading right now at 1.3396