GBP/USD pierces 1.3800, hits fresh monthly high above 1.3830

• GBP/USD preserves its bullish momentum during the European session.
• US Dollar Index continues to push lower toward 93.50.
• Wall Street's main indexes remain on track to open higher.

The GBP/USD pair continued to push higher during the European trading hours and reached its strongest level in a month at 1.3832. As of writing, the pair was up 0.75% at 1.3828.

USD selloff picks up steam

The heavy selling pressure surrounding the greenback on Tuesday seems to be fueling the pair's rally. In the absence of high-tier macroeconomic data releases, the risk-positive market environment is making it difficult for the dollar to find demand. The US Dollar Index was last seen losing 0.42% on the day at 93.55.

Later in the session, September Housing Starts and Building Permits data will be featured in the economic docket. In the meantime, the US stock index futures are up between 0.35% and 0.45%, suggesting that risk flows are likely to continue to dominate the financial markets in the second half of the day.

On the other hand, increasing Bank of England rate hike expectations ahead of Wednesday's September UK inflation report is allowing the British pound to outperform its rivals. 

UK September CPI Inflation Preview: Will rising price pressures boost British pound?

Technical levels to watch for