Investing.com - The pound took back earlier losses against the dollar on Thursday after news that the U.S. economy gained much more steam than expected in the third quarter sparked a rally for the greenback.
In U.S. trading on Thursday, GBP/USD was trading at 1.6095, up 0.09%, up from a session low of 1.6010 and off from a high of 1.6115.
Cable was likely to find support at 1.5903, Monday's low, and resistance at 1.6118, Wednesday's high.
The pound weakened and the dollar rose earlier after the U.S. Bureau of Economic Analysis revealed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, far surpassing expectations for a 2.0% reading.
The U.S. economy grew by 2.5% in the preceding quarter.
The robust data rekindled expectations that the Federal Reserve could announce plans to scale back its USD85 billion-a-month stimulus program as its next monthly meeting in December.
Stimulus programs aim to drive recovery by depressing borrowing costs, weakening the dollar in the process, and talk of their dismantling strengthens the currency.
Separately, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000, largely in line with analysts' forecasts for a claims to fall by 10,000.
Across the Atlantic, the Bank of England's monetary policy committee voted to leave rates on hold at 0.5% and made no changes to its GBP375 billion quantitative easing stimulus package.
The announcement came after economic data earlier this week added to indications that the recovery in the U.K. is deepening.
The pound fell against the dollar though profit taking erased the greenback's gains against its U.K. counterpart and sent the pair into positive territory in afternoon trading.
The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP down 0.70% at 0.8348 and GBP/JPY down 0.71% at 157.52.
On Friday, the U.K. is to release data on the trade balance.
The University of Michigan is to release the preliminary reading of its consumer sentiment index. The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.
In U.S. trading on Thursday, GBP/USD was trading at 1.6095, up 0.09%, up from a session low of 1.6010 and off from a high of 1.6115.
Cable was likely to find support at 1.5903, Monday's low, and resistance at 1.6118, Wednesday's high.
The pound weakened and the dollar rose earlier after the U.S. Bureau of Economic Analysis revealed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, far surpassing expectations for a 2.0% reading.
The U.S. economy grew by 2.5% in the preceding quarter.
The robust data rekindled expectations that the Federal Reserve could announce plans to scale back its USD85 billion-a-month stimulus program as its next monthly meeting in December.
Stimulus programs aim to drive recovery by depressing borrowing costs, weakening the dollar in the process, and talk of their dismantling strengthens the currency.
Separately, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000, largely in line with analysts' forecasts for a claims to fall by 10,000.
Across the Atlantic, the Bank of England's monetary policy committee voted to leave rates on hold at 0.5% and made no changes to its GBP375 billion quantitative easing stimulus package.
The announcement came after economic data earlier this week added to indications that the recovery in the U.K. is deepening.
The pound fell against the dollar though profit taking erased the greenback's gains against its U.K. counterpart and sent the pair into positive territory in afternoon trading.
The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP down 0.70% at 0.8348 and GBP/JPY down 0.71% at 157.52.
On Friday, the U.K. is to release data on the trade balance.
The University of Michigan is to release the preliminary reading of its consumer sentiment index. The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.