Investing.com - The pound gained on the broadly weaker U.S. dollar on Wednesday, hovering close to a 16-month high after government data showed that the U.K. economy expanded in line with expectations in the first quarter.
GBP/USD hit 1.6581 during U.S. morning trade, the pair’s highest since April 21; the pair subsequently consolidated at 1.6549, gaining 0.42%.
Cable was likely to find support at 1.6384, the low of April 21 and short-term resistance at 1.6599, the high of April 21 and a 16-month high.
Earlier in the day, the U.K. Office for National Statistics said gross domestic product expanded by 0.5% between January and March, in line with forecasts, after contracting by the same amount in the final three months of 2010.
The report said the underlying picture in the first quarter was broadly flat and the level of GDP growth between January and March was the same as in the third quarter of 2010.
Construction shrank 4.7%, the most in two years, the statistics office said. Manufacturing increased by 1.1% in the first quarter, driving a 0.4% overall gain in industrial production. Meanwhile, services expanded by 0.9%, the most since 2006.
Meanwhile, the greenback was under pressure ahead of a key interest rate announcement and unprecedented press conference by Federal Reserve Chairman Ben Bernanke later in the day.
The pound was also higher against the euro, with EUR/GBP shedding 0.29% to hit 0.8859.
Also Wednesday, the U.S. Commerce Department said new orders for long-lasting U.S. manufactured goods rose solidly in March, while the previous month's figure was revised upward, pointing to strength in the manufacturing sector.
GBP/USD hit 1.6581 during U.S. morning trade, the pair’s highest since April 21; the pair subsequently consolidated at 1.6549, gaining 0.42%.
Cable was likely to find support at 1.6384, the low of April 21 and short-term resistance at 1.6599, the high of April 21 and a 16-month high.
Earlier in the day, the U.K. Office for National Statistics said gross domestic product expanded by 0.5% between January and March, in line with forecasts, after contracting by the same amount in the final three months of 2010.
The report said the underlying picture in the first quarter was broadly flat and the level of GDP growth between January and March was the same as in the third quarter of 2010.
Construction shrank 4.7%, the most in two years, the statistics office said. Manufacturing increased by 1.1% in the first quarter, driving a 0.4% overall gain in industrial production. Meanwhile, services expanded by 0.9%, the most since 2006.
Meanwhile, the greenback was under pressure ahead of a key interest rate announcement and unprecedented press conference by Federal Reserve Chairman Ben Bernanke later in the day.
The pound was also higher against the euro, with EUR/GBP shedding 0.29% to hit 0.8859.
Also Wednesday, the U.S. Commerce Department said new orders for long-lasting U.S. manufactured goods rose solidly in March, while the previous month's figure was revised upward, pointing to strength in the manufacturing sector.