Investing.com - The pound climbed against the U.S. dollar on Tuesday, after the release of better than expected inflation data from the U.K. and as demand for the greenback remained under pressure due to a recent string of downbeat U.S. data.
GBP/USD hit 1.2982 during European morning trade, the session high; the pair subsequently consolidated at 1.2972, advancing 0.72%.
Cable was likely to find support at 1.2862, Monday’s low and a one-month low and resistance at 1.3039, Friday’s high.
The U.K. Office for National Statistics said the rate of consumer price inflation rose by an annual rate of 0.6% last month, above forecasts for a gain of 0.5% and compared to the 0.5% increase seen in June.
Month-over-month, consumer prices fell 0.1% in July, in line with forecasts and after the prior month’s 0.2% increase.
Meanwhile, the greenback remained under broad selling pressure after a recent string of disappointing U.S. economic reports fueled concerns over the strength of the economy and dampened expectations for a rate hike before the end of the year.
Sterling was also higher against the euro, with EUR/GBP edging down 0.13% to 0.8673.