Investing.com - The pound was little changed against the U.S. dollar on Monday, despite an upbeat report on manufacturing activity from the U.K., as strong U.S. data published on Friday continued to support demand for the greenback.
GBP/USD hit 1.6024 during European morning trade, the pair's highest since October 30; the pair subsequently consolidated at 1.6004, adding 0.06%.
Cable was likely to find support at 1.5873, the low of October 15 and a one-year low and resistance at 1.6163, the high of October 29.
Markit research group said the U.K. manufacturing purchasing managers' index rose to 53.2 this month from 51.6 in September. Analysts had expected the index to slip to 51.2 in October.
But demand for the dollar remained supported as signs the U.S. economic recovery is on track fuelled fresh speculation the Fed could raise interest rates earlier than expected.
On Friday, the University of Michigan reported on Friday that its consumer sentiment index rose to a seven-year high of 86.9 this month from 86.4 in September.
A separate report showed that the Chicago purchasing managers' index rose to a three-and-a-half year high of 66.2 in October from 60.5 in September, confounding expectations for a reading of 60.0.
Sterling was also higher against the euro, with EUR/GBP shedding 0.31% to 0.7805.
The single currency came under pressure after Markit said that the German manufacturing PMI fell to 51.4 in October from a reading of 51.8 the previous month, confounding expectations for the index to remain unchanged.
Markit's manufacturing PMI for the entire euro zone ticked down to 50.6 this month from 50.7 in September. Analysts had expected the index to remain unchanged.
Later in the day, the U.S. was to publish a report by the Institute of Supply Management on manufacturing activity.