Investing.com - The pound edged higher against the U.S. dollar on Friday, supported by the release of upbeat U.K. data and as the Federal Reserve’s decision this week to leave its monetary policy unchanged continued to weigh on the greenback.
GBP/USD hit 1.3214 during European morning trade, the session high; the pair subsequently consolidated at 1.3188, adding 0.19%.
Cable was likely to find support at 1.3055, the low of July 26 and resistance at 1.3293, th high of July 22.
The Bank of England reported on Friday that net lending to individuals rose to £5.2 billion in June from £4.5 billion in May, whose figure was upwardly revised from a previously estimated £4.3 billion.
Analysts had expected net lending to individuals to rise to hit £4.2 billion last month.
But the pound’s gains were capped as investors turned to the BoE’s policy meeting next week amid growing expectations for a rate cut.
The Financial Times reported on Tuesday that Martin Weale, a member of the BOE's rate-setting committee, dropped his opposition to an easing and now favored immediate stimulus.
Meanwhile, the dollar remained under pressure after the Fed left interest rates unchanged at the conclusion of its two-day policy meeting on Wednesday, in a widely expected move.
In its monthly policy statement, the Fed said that “near-term risks to the economic outlook have diminished” and that the labor market has “strengthened”.
Market participants were now eyeing the release of second quarter U.S. economic growth data, due later Friday for further indications on the strength of the economy.
Sterling was fractionally higher against the euro, with EUR/GBP at 0.8409.