Investing.com - The pound extended gains against the U.S. dollar on Thursday, rising to a seven-week high as risk appetite remained strong after upbeat U.S. GDP data and the announcement of a European deal to contain the region's debt crisis.
GBP/USD hit 1.6083 during U.S. morning trade, the pair's highest since September 6; the pair subsequently consolidated at 1.6062, gaining 0.54%.
The pair was likely to find support at 1.5899, the low of October 24 and resistance at 1.6166, the high of September 6.
Risk appetite was boosted after preliminary data showed that gross domestic product in the U.S. rose more-than-expected in the third quarter, expanding at the fastest rate since the third quarter of 2010.
The reading nearly doubled growth of 1.3% recorded in the preceding quarter. Analysts had expected U.S. gross domestic product to rise 2.4% in the third quarter.
Investor confidence had strengthened earlier, after European leaders reached an agreement with banks to take a 'voluntary' 50% loss on the face value of their Greek debt, curbing risks of a potential Greek default.
Leaders also agreed to expand the firepower of the euro zone's bailout fund, the European Financial Stability Facility, to EUR1 trillion.
The pound's gains remained limited, amid caution over the economic outlook for the U.K. after the Bank of England implemented a second round of monetary easing earlier this month.
Earlier Thursday, the Confederation of British Industry said the decline in retail sales moderated in October and retailers expected to see only “modest growth” next month, in the build-up to Christmas.
Elsewhere, sterling was sharply lower against the euro with EUR/GBP surging 1.33%, to hit 0.8821.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 2,000 to 402,000, short of expectations for a decline to 400,000.
A separate report showed that U.S. pending home sales fell for the third consecutive month in September, declining by 4.6%. Analysts had expected pending home sales to rise by 0.2%.
GBP/USD hit 1.6083 during U.S. morning trade, the pair's highest since September 6; the pair subsequently consolidated at 1.6062, gaining 0.54%.
The pair was likely to find support at 1.5899, the low of October 24 and resistance at 1.6166, the high of September 6.
Risk appetite was boosted after preliminary data showed that gross domestic product in the U.S. rose more-than-expected in the third quarter, expanding at the fastest rate since the third quarter of 2010.
The reading nearly doubled growth of 1.3% recorded in the preceding quarter. Analysts had expected U.S. gross domestic product to rise 2.4% in the third quarter.
Investor confidence had strengthened earlier, after European leaders reached an agreement with banks to take a 'voluntary' 50% loss on the face value of their Greek debt, curbing risks of a potential Greek default.
Leaders also agreed to expand the firepower of the euro zone's bailout fund, the European Financial Stability Facility, to EUR1 trillion.
The pound's gains remained limited, amid caution over the economic outlook for the U.K. after the Bank of England implemented a second round of monetary easing earlier this month.
Earlier Thursday, the Confederation of British Industry said the decline in retail sales moderated in October and retailers expected to see only “modest growth” next month, in the build-up to Christmas.
Elsewhere, sterling was sharply lower against the euro with EUR/GBP surging 1.33%, to hit 0.8821.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 2,000 to 402,000, short of expectations for a decline to 400,000.
A separate report showed that U.S. pending home sales fell for the third consecutive month in September, declining by 4.6%. Analysts had expected pending home sales to rise by 0.2%.