The British pound continues to soften against the U.S dollar, with the pair again swiftly rejected from the 1.3400 level during the European trading session. The GBPUSD is currently testing the 1.3360 support level, with pound sellers looking to take further control of the pair below this key support area. With a lack of UK and U.S macro-economic data, traders will look to the U.S congress, as the House Senate votes on the U.S tax bill during the U.S trading session. The passing of tax reform bill should be U.S dollar index supportive, although it is not clear if market participants have fully priced this into the greenback yet.
The GBPUSD pair will turn further bearish below the 1.3360 level, with sellers looking then looking to test towards the 1.3330 and 1.3300 support levels.
Should price action fail to break below the 1.3360 level, GBPUSD buyers will likely start to target towards the 1.3400 and 1.3418 resistance areas.