The British pound has moved back below the 1.3400 level against the U.S dollar, as the greenback pairs back losses ahead of the U.S tax reform vote. The GBPUSD pair rose sharply on Monday, hitting 1.3418, after buyers pushed price above the key 1.3360 level, erasing some of Friday’s steep trading losses. The U.S dollar index will likely take center stage on Tuesday, as the House Senate votes on the U.S tax bill during the U.S trading session, with most expecting the bill to passed. Traders should expect a reasonable degree of volatility in the foreign exchange market heading into the vote.
GBPUSD sellers retain control of the pair while price action stays below the 1.3400 level. Further losses towards the 1.3360 and 1.3330 support levels remain likely.
Should price action move back above the 1.3400 level, GBPUSD sentiment will turn bullish. Upside targets remain 1.3418 and 1.3440.
