Investing.com – The pound slid to a daily low against the U.S. dollar on Wednesday and looked likely to face more selling pressure if weak data on U.K. gross domestic product further dampened expectations for near-term rate hikes by the Bank of England.
GBP/USD hit 1.6444 during European morning trade, the daily low; the pair subsequently consolidated at 1.6455, slipping 0.14%.
Cable was likely to find support at 1.6306, the low of April 20 and resistance at 1.6551, the high of April 25.
The pound has moved broadly higher this year, boosted by speculation that the BoE would raise interest rates in the coming months, although uncertainty over the timing of possible rate hikes has lingered due to the uneven nature of the U.K. economic recovery.
On Tuesday, BoE policymaker Andrew Sentance, a long-standing hawk, warned that low interest rates were eroding the central bank's credibility.
The pound was also lower against the euro, with EUR/GBP climbing 0.30% to hit 0.8913.
Later in the day, the U.K. was to publish preliminary data on first quarter GDP.
Also Wednesday, the U.S. was to publish official data on durable goods orders, while the Federal Reserve was to announce its federal funds rate. The announcement was to be followed by the first-ever post policy meeting press conference by Fed Chairman Ben Bernanke.
GBP/USD hit 1.6444 during European morning trade, the daily low; the pair subsequently consolidated at 1.6455, slipping 0.14%.
Cable was likely to find support at 1.6306, the low of April 20 and resistance at 1.6551, the high of April 25.
The pound has moved broadly higher this year, boosted by speculation that the BoE would raise interest rates in the coming months, although uncertainty over the timing of possible rate hikes has lingered due to the uneven nature of the U.K. economic recovery.
On Tuesday, BoE policymaker Andrew Sentance, a long-standing hawk, warned that low interest rates were eroding the central bank's credibility.
The pound was also lower against the euro, with EUR/GBP climbing 0.30% to hit 0.8913.
Later in the day, the U.K. was to publish preliminary data on first quarter GDP.
Also Wednesday, the U.S. was to publish official data on durable goods orders, while the Federal Reserve was to announce its federal funds rate. The announcement was to be followed by the first-ever post policy meeting press conference by Fed Chairman Ben Bernanke.