Investing.com - The pound slipped lower against the U.S. dollar on Tuesday, as expectations for U.K. interest rates to remain on hold for longer than expected continued to weigh, while markets began to turn their focus to the Federal Reserve's policy statement on Wednesday.
GBP/USD hit 1.4773 during European morning trade, the session low; the pair subsequently consolidated at 1.4787, shedding 0.28%.
Cable was likely to find support at 1.4696, the low of March 13 and a nearly five-year low and resistance at 1.4896, the high of March 13.
Market participants were eyeing Wednesday’s Federal Reserve statement to see if it would drop its reference to being patient before raising rates and signal that it is ready to hike rates depending on economic data.
Official data on Monday showed that U.S. industrial production rose just 0.1% in February, falling short of expectations for a 0.2% gain, while manufacturing output dipped 0.1%.
Another report showed that manufacturing activity growth in New York State slowed in March for a second straight month as new orders fell.
Meanwhile, sentiment on the pound remained vulnerable after Bank of England Governor Mark Carney indicated on Friday that interest rates could remain on hold beyond the start of next year.
Sterling was lower against the euro, with EUR/GBP rising 0.38% to 0.7153.
Later in the day, the U.S. was to report on building permits and housing starts.