Investing.com – The pound surged to a fresh 7-week high against the U.S. dollar on Monday, after the International Monetary Fund endorsed Britain's plans to slash its budget deficit in the next five years.
GBP/USD hit 1.5868 during European afternoon trade, the pair's highest since August 11; the pair subsequently consolidated at 1.5853, gaining 0.18%.
Cable was likely to find support at 1.5641, Friday's low and resistance at 1.5907, the high of August 10.
Earlier in the day, the IMF said that the U.K. economy was on the mend even though Government austerity cuts could stymie growth in the short-term and the possibility of a double-dip recession could not be completely ruled out.
"The plan greatly reduces the risk of a costly loss of confidence in public finances and supports a balanced recovery," the IMF report said.
The pound was also up against the euro, with EUR/GBP shedding 0.24% to hit 0.8504.
Also Monday, the Confederation of British Industry said that activity levels in the U.K. financial services sector grew at their fastest rate since before the financial crisis in the third quarter, but the rate of growth remained below expectations.
GBP/USD hit 1.5868 during European afternoon trade, the pair's highest since August 11; the pair subsequently consolidated at 1.5853, gaining 0.18%.
Cable was likely to find support at 1.5641, Friday's low and resistance at 1.5907, the high of August 10.
Earlier in the day, the IMF said that the U.K. economy was on the mend even though Government austerity cuts could stymie growth in the short-term and the possibility of a double-dip recession could not be completely ruled out.
"The plan greatly reduces the risk of a costly loss of confidence in public finances and supports a balanced recovery," the IMF report said.
The pound was also up against the euro, with EUR/GBP shedding 0.24% to hit 0.8504.
Also Monday, the Confederation of British Industry said that activity levels in the U.K. financial services sector grew at their fastest rate since before the financial crisis in the third quarter, but the rate of growth remained below expectations.