Investing.com - The pound remained higher against the U.S. dollar on Tuesday, as data showing that U.K. inflation rose at a faster rate than forecast in April continued to support.
GBP/USD hit 1.6864 during U.S. morning trade, the pair's highest since May 14; the pair subsequently consolidated at 1.6841, adding 0.16%.
Cable was likely to find support at 1.6754, the low of May 14 and resistance at 1.6902, the high of May 12.
The Office for National Statistics earlier said that the U.K. annual rate of consumer inflation rose to 1.8%, up from 1.6% in March and ahead of expectations for 1.7%.
That means prices are rising faster than wage growth after data last week showed that average earnings rose by 1.7% in the three months to February, and by only 1.4% excluding bonuses.
The rise in inflation was due in part to higher transport costs, the ONS said, as airlines pushed up ticket prices in time for the Easter holidays.
On a month over month basis, consumer prices increased by 0.4%, compared to estimates for a 0.3% rise.
The ONS also said that U.K. house prices rose by 8.0% in March from a year earlier, slowing from 9.2% in February. House prices in London jumped 17% in the last 12 month, it added.
Sterling was higher against the euro, with EUR/GBP shedding 0.21% to 0.8135.
The euro remained under pressure amid mounting expectations for monetary easing by the European Central Bank at its next meeting in June and after data last week showed that the euro zone economy grew at a slower than forecast rate in the first quarter.