Investing.com - The pound was higher against the U.S. dollar on Monday, but gains were limited as investors eyed developments in the euro zone after Sunday’s votes in Greece and France sparked fresh concerns over the handling of the financial crisis in the euro zone.
GBP/USD hit 1.6178 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.6172, adding 0.15%.
Cable was likely to find support at 1.6108, the low of April 24 and resistance at 1.6201, the high of May 4.
Sentiment found mild support earlier after official data showed that German factory orders rose by a seasonally adjusted 2.2% in March, easily surpassing expectations for a 0.5% increase.
But investors remained cautious after weekend election results in Greece threw the future of the country’s international bailout agreement into doubt and fuelled fears over a possible Greek exit from the euro zone.
Neither of the country’s two pro-bailout parties secured enough votes to form a government, as voters favored smaller parties who campaigned against harsh austerity measures.
In France, President Nicolas Sarkozy was defeated by socialist candidate François Hollande, who has said he wants to renegotiate the euro zone fiscal pact in order to stimulate growth in the region.
Elsewhere, the pound was trading close to three-and-a-half year high, with EUR/GBP dropping 0.49%, to hit 0.8062.
Trading volumes were expected to remain light on Monday as markets in the U.K. were closed for a bank holiday.
GBP/USD hit 1.6178 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.6172, adding 0.15%.
Cable was likely to find support at 1.6108, the low of April 24 and resistance at 1.6201, the high of May 4.
Sentiment found mild support earlier after official data showed that German factory orders rose by a seasonally adjusted 2.2% in March, easily surpassing expectations for a 0.5% increase.
But investors remained cautious after weekend election results in Greece threw the future of the country’s international bailout agreement into doubt and fuelled fears over a possible Greek exit from the euro zone.
Neither of the country’s two pro-bailout parties secured enough votes to form a government, as voters favored smaller parties who campaigned against harsh austerity measures.
In France, President Nicolas Sarkozy was defeated by socialist candidate François Hollande, who has said he wants to renegotiate the euro zone fiscal pact in order to stimulate growth in the region.
Elsewhere, the pound was trading close to three-and-a-half year high, with EUR/GBP dropping 0.49%, to hit 0.8062.
Trading volumes were expected to remain light on Monday as markets in the U.K. were closed for a bank holiday.