Investing.com - The pound was higher against the U.S. dollar on Thursday, after the release of U.K. economic growth data in line with expectations and as markets continued to recover from Britain’s decision to leave the European Union last week.
GBP/USD hit 1/3494 during European morning trade, the session high; the pair subsequently consolidated at 1.3467, up 0.25%.
Cable was likely to find support at 1.3288, Wednesday’s low and resistance at 1.3564, the high of June 27.
The U.K. Office for National Statistics said gross domestic product expanded by 0.4% in the first quarter, unchanged in this final estimate and in line with expectations. The U.K.’s economy grew by 0.6% in the preceding quarter.
Year-over-year, the U.K. economy grew by 2.0% in the three months ended March 31, also in line with forecasts and unchanged from the prior estimate. The U.K. economy expanded at an annualized rate of 2.1% in the fourth quarter of 2015.
The pound was still recovering from record losses posted as fears that a Brexit could hit investment in the U.K. economy, threaten London's role as a global financial capital and usher in a period of slower global economic growth.
European Council President Donald Tusk said on Wednesday that there was a "calm and serious discussion" about the consequences of the vote.
He also reiterated that there would be no negotiations with the U.K on any future relationship until the country formally notified the EU of its intention to withdraw.
Sterling was also higher against the euro, with EUR/GBP sliding 0.35% to 0.8256.
In the euro zone, data earlier showed that German retail sales rose 0.9% in May, beating expectations for an increase of 0.7%. Retail sales fell 0.3% in April, whose figure was revised from a previously estimated decline of 0.9%.
A separate report showed that the number of unemployed people in Germany declined by 6,000 in June, compared to expectations for a 5,000 drop. The number of unemployed people fell by 10,000 in May, revised from a previously estimated 11,000 decline.
Germany’s unemployment rate held steady this month at 6.1% in line with expectations.