Investing.com - The pound was hovering close to a five-month high against the U.S. dollar on Tuesday, as markets awaited the release of U.K. data on first quarter growth, which will show if the country’s economy avoided a recession.
GBP/USD hit 1.6153 during early European trade, the session high; the pair subsequently consolidated at 1.6147, inching up 0.03%.
Cable was likely to find support at 1.6037, the low of April 20 and short-term resistance at 1.6269, the high of September 1.
Analysts were expecting U.K. gross domestic product to have expanded by 0.1% in the three months to March, after a 0.3% contraction in the fourth quarter.
The pound has strengthened against the dollar in the past week, as investors trimmed back expectations for another round of monetary stimulus from the Bank of England, while economic data indicated that the recovery is gaining traction.
Meanwhile, investors remained wary amid ongoing concerns over risks from politically instability in the euro zone, stemming from France and The Netherlands, and high borrowing costs on the periphery of the region, particularly in Spain.
The pound slipped lower against the euro, with EUR/GBP easing up 0.10% to hit 0.8182.
Also Wednesday, the U.K. was to release a report on industrial order expectations, while the U.S. was to publish government data on durable goods orders. In addition, the Federal Reserve was to announce its benchmark interest rate and release its rate statement.
GBP/USD hit 1.6153 during early European trade, the session high; the pair subsequently consolidated at 1.6147, inching up 0.03%.
Cable was likely to find support at 1.6037, the low of April 20 and short-term resistance at 1.6269, the high of September 1.
Analysts were expecting U.K. gross domestic product to have expanded by 0.1% in the three months to March, after a 0.3% contraction in the fourth quarter.
The pound has strengthened against the dollar in the past week, as investors trimmed back expectations for another round of monetary stimulus from the Bank of England, while economic data indicated that the recovery is gaining traction.
Meanwhile, investors remained wary amid ongoing concerns over risks from politically instability in the euro zone, stemming from France and The Netherlands, and high borrowing costs on the periphery of the region, particularly in Spain.
The pound slipped lower against the euro, with EUR/GBP easing up 0.10% to hit 0.8182.
Also Wednesday, the U.K. was to release a report on industrial order expectations, while the U.S. was to publish government data on durable goods orders. In addition, the Federal Reserve was to announce its benchmark interest rate and release its rate statement.