Investing.com - The pound edged higher against the U.S. dollar on Tuesday, after positive U.K. data but gains were expected to remain limited as expectations for upcoming rate hikes by both the Federal Reserve and the Bank of England lent equal support to the two currencies.
GBP/USD hit 1.5591 during European morning trade, the session high; the pair subsequently consolidated at 1.5575, easing up 0.08%.
Cable was likely to find support at 1.5448, the low of July 14 and resistance at 1.5671, the high of July 17.
The U.K. Office for National Statistics reported on Tuesday that public sector net borrowing rose to £8.58 billion in June from £8.35 billion in May, whose figure was downwardly revised from a previously estimated £9.35 billion.
Analysts had expected public sector net borrowing to increase to £8.60 billion last month.
Meanwhile, the pound also remained supported after BoE Governor Mark Carney said last week week that the time for rate increases is moving closer.
At the same time, demand for the dollar remained underpinned after Fed Chair Janet Yellen said, in testimony before the House Financial Services committee last week, that the Fed is likely to raise rates "at some point this year."
Sterling was lower against the euro, with EUR/GBP adding 0.14% to 0.6967.
The single currency found mild support after Greek banks reopened on Monday following a forced 3-week closure, while restrictions on cash withdrawals remained in place.
Also Monday, Greece repaid the totality of its arrears of about €2.0 billion to the International Monetary Fund. "Greece is no longer in arrears to the IMF," the Fund's spokesman Gerry Rice announced on Monday.
Athens had fallen into arrears with the IMF on June 30 after the country missed a €1.6 billion payment.
"The Fund stands ready to continue assisting Greece in its efforts to return to financial stability and growth," Rice added.
The Greek Parliament was scheduled to vote on further austerity measures on Wednesday.