Investing.com - The pound trimmed gains against the U.S. dollar on Tuesday, after the release of downbeat U.S. consumer confidence data dampened risk sentiment, although earlier U.K. economic reports continued to support demand for sterling.
GBP/USD pulled away from 1.6719, the pair's highest since February 21, to hit 1.6662 during U.S. morning trade, still up 0.05%.
Cable was likely to find support at 1.6584, Monday's low and resistance at 1.6823, the high of February 17.
The Conference Board reported that its consumer confidence index declined to 78.1 in February, down from 79.4 in January, amid concerns over the short-term outlook for business conditions, jobs, and earnings.
Analysts had expected the index to tick up to 80.0.
The present situation index rose to its highest level in almost six years, but the expectations index declined, indicating that while consumers believe the economy has improved they do not foresee further considerable improvement in the coming months.
The data came after Standard & Poor’s with Case-Shiller reported that its house price index rose 13.4% in December from a year earlier, compared to forecasts for a 13.3% gain, following a rise of 13.7% in November.
The pound strengthened against the dollar earlier, after data from the British Bankers Association showed that mortgage approvals rose 57% in January from a year earlier to 49,972, hitting a 76-month high.
A separate report by the Confederation of British Industry said U.K. retail sales rose at the fastest rate since June 2013 in February. The CBI distributive trades survey rose to 37 up from 14 in January, well ahead of forecasts for an uptick to 15.
Sterling was also higher against the euro, with EUR/GBP shedding 0.13% to 0.8235.
The euro came under pressure after the European Commission revised up its growth forecast for the euro zone to 1.2% this year, up from 1.1% in November.
However, the EC also cut its inflation forecast for 2014 to 1% from 1.5% in November and warned that debt levels in several countries will continue to climb.
Earlier Tuesday, official data confirmed that Germany’s economy grew 0.4% in the fourth quarter and expanded 1.3% on a year-over-year basis as strong overseas demand bolstered exports.