Investing.com - The pound was trading close to 27-month highs against the dollar on Tuesday after data showed that manufacturing and industrial output in the U.K. rose in October, adding to signs that the economic recovery is deepening.
GBP/USD hit session highs of 1.6466, the strongest level since August 2011 and was last up 0.07% to 1.6438.
Cable was likely to find support at 1.6360 and resistance at 1.6530.
The Office for National Statistics said industrial output increased by 0.4% in October, in line with forecasts and was up 3.2% from a year earlier. It was the largest annual gain in industrial output since January 2011.
The ONS said manufacturing production also rose 0.4% in October and was 2.7% higher on a year-over-year basis, the fastest annual growth since May 2011. Economists had forecast a 0.4% monthly increase and 2.9% annual gain.
In a separate report the ONS said the U.K. trade deficit narrowed to GBP9.73 billion in October, from an upwardly revised deficit of GBP10.10 billion in September. Economists had expected the deficit to shrink to GBP9.35 billion.
The deficit on goods trade with the European Union rose to a record of almost GBP6.5 billion, from GBP6.2 billion in September.
Elsewhere, sterling was almost unchanged against the euro, with EUR/GBP inching up 0.01% to 0.8363.
GBP/USD hit session highs of 1.6466, the strongest level since August 2011 and was last up 0.07% to 1.6438.
Cable was likely to find support at 1.6360 and resistance at 1.6530.
The Office for National Statistics said industrial output increased by 0.4% in October, in line with forecasts and was up 3.2% from a year earlier. It was the largest annual gain in industrial output since January 2011.
The ONS said manufacturing production also rose 0.4% in October and was 2.7% higher on a year-over-year basis, the fastest annual growth since May 2011. Economists had forecast a 0.4% monthly increase and 2.9% annual gain.
In a separate report the ONS said the U.K. trade deficit narrowed to GBP9.73 billion in October, from an upwardly revised deficit of GBP10.10 billion in September. Economists had expected the deficit to shrink to GBP9.35 billion.
The deficit on goods trade with the European Union rose to a record of almost GBP6.5 billion, from GBP6.2 billion in September.
Elsewhere, sterling was almost unchanged against the euro, with EUR/GBP inching up 0.01% to 0.8363.