FXstreet.com (Córdoba) - The pound dropped against the dollar and the euro on Monday undermined by soft UK house prices and anticipation of a dovish BoE quarterly inflation report midweek.

GBP/USD fell over 120 pips from Asian highs and hit a daily low of 1.5545 before bouncing slightly. At time of writing, the cable is quoting at the 1.5560 area, recording a 0.6% loss on the day.

From a technical view, Valeria Bednarik chief analyst at FXstreet.com notes that accelerations below recent low should open doors for a downside continuation towards the 1.5490/1.5500 area, followed later by key 1.5440 price zone.

"To the upside, only steady gains above 1.5610 will favor an upward spike towards the 1.5660 area, quite unlikely at the time being", the analyst adds.