Investing.com - The pound was little changed against the U.S. dollar on Tuesday, as market sentiment improved following robust German economic growth data, but safe haven demand remained supported amid ongoing concerns over political turmoil in Greece.
GBP/USD hit 1.6114 during European morning trade, the session high; the pair subsequently consolidated at 1.6091, inching up 0.01%.
The pair was likely to find support at 1.6050, Monday’s low and a three-week low and resistance at 1.6152, Friday’s high.
Market sentiment found support after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%.
But investors remained cautious ahead of a fresh round of Greek cross party talks aimed at forming a government, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
The pound pulled away from a three-and-a-half year high against the euro, with EUR/GBP adding 0.30% to hit 0.7991.
Later in the day, the U.K. was to release official data on the trade balance, while the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.
GBP/USD hit 1.6114 during European morning trade, the session high; the pair subsequently consolidated at 1.6091, inching up 0.01%.
The pair was likely to find support at 1.6050, Monday’s low and a three-week low and resistance at 1.6152, Friday’s high.
Market sentiment found support after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%.
But investors remained cautious ahead of a fresh round of Greek cross party talks aimed at forming a government, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
The pound pulled away from a three-and-a-half year high against the euro, with EUR/GBP adding 0.30% to hit 0.7991.
Later in the day, the U.K. was to release official data on the trade balance, while the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.