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Forex - GBP/USD little changed after positive U.S. data

Published 04/25/2014, 10:23 AM
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Investing.com - The pound was little changed against the U.S. dollar on Friday, still hovering near four-and-a-half year highs after the release of positive U.S. consumer sentiment data, while a strong U.K. retail sales report published earlier in the day continued to support.

GBP/USD hit 1.6831 during European morning trade, the pair's highest since Wednesday; the pair subsequently consolidated at 1.6815, inching up 0.07%.

Cable was likely to find support at 1.6718, the low of April 11 and resistance at 1.6842, the high of April 17 and a four-and-a-half year high.

In a revised report, the University of Michigan said its consumer sentiment index rose to a nine-month high of 84.1 in April, from a reading of 82.6 in March. Analysts had expected the index to rise to 83.0 this month.

The University of Michigan also said inflation expectations for the next 12 months ticked up to 3.2% in April, from the previous month's estimate of 3.1%.

Earlier Friday, official data showed that U.K. retail sales rose 0.1% in March, beaing expectations for a 0.4% fall. Retail sales in February were revised down to a 1.3% increase from a previously estimated 1.7% gain.

A separate report showed that U.K. mortgage approvals rose by 45,900 last month, compared to expectations for an increase of 48,900. February's mortgage approvals were revised down to a 47,200 rise from a previously estimated 47,600 increase.

Meanwhile, investors remained cautious after Ukrainian forces killed up to five pro-Moscow rebels on Thursday. In response, Russia launched army drills near the border, sparking fears its troops would invade.

U.S. Secretary of State John Kerry said Washington was drawing closer to imposing more sanctions on Moscow.

Sterling was steady against the euro, with EUR/GBP dipping 0.04% to 0.8229.

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