Investing.com - The pound edged up against the U.S. dollar on Thursday, hovering near two-month highs as sentiment on the greenback remained vulnerable after the Federal Reserve's latest policy statement released on Wednesday.
GBP/USD hit 1.5492 during European morning trade, the session high; the pair subsequently consolidated at 1.5460, adding 0.15%.
Cable was likely to find support at 1.5325, Wednesday's low and resistance at 1.5552, the high of February 26.
The dollar came under pressure after the Fed cited weakness in the U.S. economy, leading investors to believe that the central bank will not raise interest rates in the near future.
In its monthly policy statement on Wednesday, the Fed said it will take into account labor market conditions, inflationary pressures and expectations of international financial developments when it decides on the timing of a rate increase.
The statement came after data on Wednesday showed that the U.S. gross domestic product grew just 0.2% in the three months to March, slowing from 2.2% in the final quarter of 2014. It was the slowest rate of growth in a year.
In the U.K., investors were eyeing the outcome of the upcoming general elections on May 7, which could result in a hung parliament and an unstable coalition government, which could act as a drag on growth.
Sterling was lower against the euro, with EUR/GBP rising 0.59% to 0.7250.
The single currency found support after Greece's deputy Prime Minister said on Wednesday that Athens could seal a deal with its creditors in early May.
Mr. Dragasakis warned however that it was likely to be a "minimum agreement" to obtain the delayed funds Greece needs to avoid default.
Earlier Thursday, official data showed that German retail sales declined by 2.3% last month, confounding expectations for a 0.4% rise. February's figure was revised to a 0.1% slip from a previously estimated 0.5% fall.
A separate report showed that Spain's gross domestic product rose 0.9% in the first quarter, beating expectations for a growth rate of 0.8% and up from 0.7% in the three months to December.