Investing.com - The pound remained lower against the U.S. dollar on Wednesday, as investors remained uncertain over talks to restructure Greek debt while downbeat U.K. data added to concerns that the country is entering recession territory.
GBP/USD hit 1.5534 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.5563, retreating 0.40%.
Cable was likely to find support at 1.5516, the low of January 23 and resistance at 1.5647, the high of December 26.
Worries over a potential Greek default persisted as talks between euro zone finance ministers on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
Sentiment found support earlier after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
In the U.K., preliminary data showed that gross domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter. Analysts had expected GDP to decline 0.1% in the fourth quarter.
Meanwhile, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The minutes came one day after BoE Governor Mervyn King said recent falls in inflation had given the central bank leeway to inject more stimulus into the economy and keep interest rates at record lows.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.30%, to hit 0.8317.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement. In addition, the U.S. was to release industry data on pending home sales.
Meanwhile, the World Economic Forum was beginning its five-day annual meeting in Davos in Switzerland.
GBP/USD hit 1.5534 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.5563, retreating 0.40%.
Cable was likely to find support at 1.5516, the low of January 23 and resistance at 1.5647, the high of December 26.
Worries over a potential Greek default persisted as talks between euro zone finance ministers on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
Sentiment found support earlier after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
In the U.K., preliminary data showed that gross domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter. Analysts had expected GDP to decline 0.1% in the fourth quarter.
Meanwhile, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The minutes came one day after BoE Governor Mervyn King said recent falls in inflation had given the central bank leeway to inject more stimulus into the economy and keep interest rates at record lows.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.30%, to hit 0.8317.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement. In addition, the U.S. was to release industry data on pending home sales.
Meanwhile, the World Economic Forum was beginning its five-day annual meeting in Davos in Switzerland.