Investing.com - The pound extended Monday's gains against the dollar into Tuesday as investors continue to applaud data revealing a pick-up in U.K. construction activity, while better-than-expected service-sector data also bolstered the pound.
In U.S. trading on Tuesday, GBP/USD was trading at 1.6043, up 0.47%, up from a session low of 1.5950 and off from a high of 1.6063.
Cable was likely to find support at 1.5903, Monday's low, and resistance at 1.6208, the high from Oct. 28.
The pound continued to enjoy support from Monday data revealing that the U.K. construction purchasing managers’ index rose to 59.4 last month, the highest level since September 2007, from 58.9 in September.
Analysts were expecting an unchanged reading.
Elsewhere, after data showed that activity in the U.K. services sector expanded at the fastest rate in 16 years in October.
Markit said the U.K. services purchasing managers index rose to 62.8 in October up from 60.3 in September, the sharpest rise in activity since May 1997. Economists had been expecting the index to tick down to 59.8.
Meanwhile in the U.S., the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 55.4 in October from 54.4 in September, beating forecasts for a 54.0 reading, which gave the dollar some support.
The dollar slumped against the pound, however, due to broad expectations for the Federal Reserve to keep its USD85 billion monthly bond-buying program in place into next year to drive recovery by pushing down interest rates, weakening the greenback in the process.
The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP down 0.79% at 0.8398 and GBP/JPY up 0.47% at 158.18.
In U.S. trading on Tuesday, GBP/USD was trading at 1.6043, up 0.47%, up from a session low of 1.5950 and off from a high of 1.6063.
Cable was likely to find support at 1.5903, Monday's low, and resistance at 1.6208, the high from Oct. 28.
The pound continued to enjoy support from Monday data revealing that the U.K. construction purchasing managers’ index rose to 59.4 last month, the highest level since September 2007, from 58.9 in September.
Analysts were expecting an unchanged reading.
Elsewhere, after data showed that activity in the U.K. services sector expanded at the fastest rate in 16 years in October.
Markit said the U.K. services purchasing managers index rose to 62.8 in October up from 60.3 in September, the sharpest rise in activity since May 1997. Economists had been expecting the index to tick down to 59.8.
Meanwhile in the U.S., the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 55.4 in October from 54.4 in September, beating forecasts for a 54.0 reading, which gave the dollar some support.
The dollar slumped against the pound, however, due to broad expectations for the Federal Reserve to keep its USD85 billion monthly bond-buying program in place into next year to drive recovery by pushing down interest rates, weakening the greenback in the process.
The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP down 0.79% at 0.8398 and GBP/JPY up 0.47% at 158.18.