Pound Hits Highest Level Since May Amid Weakening Dollar

The British Pound extended its gains against the US Dollar on Monday, reaching its highest level since May 12. The GBP/USD pair traded around 1.3555 as reduced expectations of an imminent Federal Reserve rate hike weighed on the US Dollar.

The US Dollar Index (DXY) slipped to near 99.45 after touching a low of 99.30, its lowest level since June 5. Price action has held above the 50-day, 100-day and 200-day Simple Moving Averages (SMAs), reinforcing the upward bias.

Trend strength firmed, with the Average Directional Index (ADX) standing at 27.6. Momentum indicators remained supportive, with the Relative Strength Index (RSI) at 64.9 and the Moving Average Convergence Divergence (MACD) staying positive.