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Forex - GBP/USD close to 6-week high as U.K. GDP data eyed

Published 07/26/2011, 04:03 AM
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EUR/GBP
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Investing.com – The pound was trading close to a six-week high against the broadly weaker U.S. dollar on Tuesday, ahead of the release of U.K. data on second quarter economic growth.

GBP/USD hit 1.6367 during early European trade, the pair’s highest since June 15; the pair subsequently consolidated at 1.6337, gaining 0.38%.

Cable was likely to find support at 1.6120, the low of June 21 and resistance at 1.6440, the high of June 14.

The greenback was broadly lower as talks between U.S. President Barack Obama and congressional leaders on raising the U.S.’s USD14.3 trillion debt ceiling remained at an impasse.

Late Monday, President Obama warned that the nation’s growing debt threatened to do “serious” damage to the economy and called on Congress to compromise, in order to avert a "reckless and irresponsible" national default ahead of the August 2 deadline.

Meanwhile, the pound was lower against the euro, with EUR/GBP climbing 0.48% to hit 0.8876.

Later Tuesday, the U.K. was to publish government data on gross domestic product growth, while that U.S. was to publish government data on new home sales, as well as reports on consumer confidence and house price inflation.

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