Investing.com - The pound trimmed losses against the U.S. dollar on Wednesday, pulling back from the session low as investors awaited the outcome of a Federal Reserve policy-setting meeting later in the day.
GBP/USD pulled back from 1.5534, the session low, to hit 1.5579 during U.S. early morning trade, still down 0.29% on the day.
Cable was likely to find support at 1.5134, the session low and resistance at 1.5627, the session high.
The pound fell to the session low against the greenback earlier, after preliminary data showed that U.K. gross domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter.
Analysts had expected GDP to decline 0.1% in the fourth quarter.
Separately, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The minutes came one day after BoE Governor Mervyn King said recent falls in inflation had given the central bank leeway to inject more stimulus into the economy and keep interest rates at record lows.
King also said that growth in the global economy was likely to slow and warned that the U.K. faced an "arduous, long and uneven" economic recovery.
Meanwhile, concerns over the threat of a default by Greece continued to weigh on market sentiment, as talks aimed at restructuring the country’s debt remained stalled.
In the U.S., industry data showed that pending home sales fell more-than-expected in December, after rising to a 19-month high the previous month.
The National Association of Realtors said its pending home sales index fell by 3.5% in December, disappointing market expectations for a 1.0% drop.
Pending home sales rose by an unrevised 7.3% in November.
Elsewhere, the pound was higher against the euro, with EUR/GBP shedding 0.18% to hit 0.8326.
Later Wednesday, the Fed was to announce its benchmark rate and publish its official rate statement.
GBP/USD pulled back from 1.5534, the session low, to hit 1.5579 during U.S. early morning trade, still down 0.29% on the day.
Cable was likely to find support at 1.5134, the session low and resistance at 1.5627, the session high.
The pound fell to the session low against the greenback earlier, after preliminary data showed that U.K. gross domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter.
Analysts had expected GDP to decline 0.1% in the fourth quarter.
Separately, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The minutes came one day after BoE Governor Mervyn King said recent falls in inflation had given the central bank leeway to inject more stimulus into the economy and keep interest rates at record lows.
King also said that growth in the global economy was likely to slow and warned that the U.K. faced an "arduous, long and uneven" economic recovery.
Meanwhile, concerns over the threat of a default by Greece continued to weigh on market sentiment, as talks aimed at restructuring the country’s debt remained stalled.
In the U.S., industry data showed that pending home sales fell more-than-expected in December, after rising to a 19-month high the previous month.
The National Association of Realtors said its pending home sales index fell by 3.5% in December, disappointing market expectations for a 1.0% drop.
Pending home sales rose by an unrevised 7.3% in November.
Elsewhere, the pound was higher against the euro, with EUR/GBP shedding 0.18% to hit 0.8326.
Later Wednesday, the Fed was to announce its benchmark rate and publish its official rate statement.