GBP/USD remains under pressure, unable to move of daily lows

• Spot keeps challenging daily lows on USD strength.
• EUR/GBP slide offers support.

GBP/USD has been trading near daily low during the last hours still pointing to the downside as the US Dollar strengthens across the board 

Will it hold above 1.3160?

The pound dropped earlier today after an awful UK sales report published by CBI for October and the slide continued afterward on the back of a stronger US dollar. GBP/USD reversed from 1-week highs above 1.3270 bottomed at 1.3160, still above yesterday’s low. 

Price remains in a modest range between 1.3185 and 1.3160 with the lower bound under pressure as USD extends gains across the board. The Dollar Index it at 94.45 at the highest level in three months, holding the bullish tone intact. US bond yields turned again to the upside, after the ECB meeting and after the House of Representatives took another step, clearing the way to Trump’s tax reform. 

A break of EUR/USD below 1.1660/65 could push GBP/USD to drop below 1.3160. Cable has been able to hold above the lows probably receiving some support from the EUR/GBP slide. 

GBP/USD Technical levels 

Below 1.3160 support levels might be located at 1.3145, 1.3110 (Oct 25 low) and 1.3080 (Oct 20 low). On the flip side, resistance is now seen at 1.3185 followed by 1.3230 (Oct 19 & 24 high / 20 hours moving average) and 1.3275/80 (Oct 26 high).