Investing.com - The pound edged higher against the U.S. dollar on Monday, but gains were expected to remain limited as markets were jittery amid geopolitical tensions in Ukraine and Vietnam.
GBP/USD hit 1.6845 during U.S. morning trade, the pair's highest since May 14; the pair subsequently consolidated at 1.6831, adding 0.10%.
Cable was likely to find support at 1.6754, the low of May 14 and resistance at 1.6883, the high of May 13.
Investors remained cautious as clashes between Ukrainian government forces and pro-Russian separatists in the east of the country continued on Monday, resulting in the death of one Ukrainian soldier.
Separately, violent anti-Chinese protests continued in Vietnam following a territorial dispute over the South China Sea.
Markets were also jittery ahead of the minutes from the Federal Reserve's latest monetary policy meeting, due for release on Wednesday, as they awaited insight on the central bank's view of the economy.
Meanwhile, demand for the pound continued to be underpinned by expectations that the Bank of England will raise interest rates ahead of other central banks as the recovery in the U.K. continues to deepen.
Sterling was fractionally lower against the euro, with EUR/GBP edging up 0.09%, to 0.8154.
The euro's gains were capped by growing expectations for fresh monetary easing by the European Central Bank at its next meeting in June, to safeguard the recovery in the euro zone and stop inflation from falling too low.
Recent comments by ECB officials have indicated that the bank is open to easing and is prepared to act swiftly if necessary.
Data late last week showing that the euro zone economy grew at a slower than expected rate in the first three months of the year added to pressure on the bank to act.