Investing.com - The pound slipped lower against the U.S. dollar on Friday, re-approaching a three-week trough as demand for the greenback remained supported by expectations for an upcoming U.S. rate hike and ahead of U.S. economic growth data due later in the day.
GBP/USD hit 1.5284 during European morning trade, the session low; the pair subsequently consolidated at 1.5300, edging down 0.11%.
Cable was likely to find support at 1.5241, the low of May 8 and resistance at 1.5439, the high of May 27.
Demand for the dollar continued to be underpinned as economic data released in the past week, including reports on inflation, new home sales, business investment and consumer confidence all indicated that the U.S. economy is gaining momentum after a slowdown in the first quarter.
Market participants were looking ahead to preliminary first-quarter U.S. economic growth data due later in the day, for further indications on the strength of the economy.
Expectations that the economy will rebound have supported the view that the Federal Reserve will begin to hike interest rates around September.
The pound also remained under pressure after the U.K. Office for National Statistics said on Thursday that its second estimate of gross domestic product confirmed growth of 0.3% % in the first quarter, unchanged from the initial estimate and below expectations for a reading of 0.4%.
On a year-over-year basis, GDP expanded 2.4%, also in line with the first estimate.
Sterling was lower against the euro, with EUR/GBP rising 0.22% to 0.7164.
Earlier Friday, official data showed that German retail sales rose 1.7% last month, beating expectations for a 0.8% gain. The change in retail sales for March was revised to a 1.4% decline from a previously estimated 2.3% drop.
Separately, a preliminary report showed that Spanish consumer prices slipped 0.2% this month, compared to expectations for a 0.5% decline, after a 0.6% fall in April.
But investors remained cautious after Greece's creditors said a deal to unlock rescue aid isn't imminent. Athens had claimed a solution could be reached by Sunday.