Investing.com - The pound trimmed losses against the U.S. dollar on Monday, after data showed that U.K. manufacturing activity expanded at the fastest rate in seven months in February, although demand for the greenback remained broadly supported by Friday's U.S. growth report.
GBP/USD pulled away from 1.5385, the pair's lowest since February 27, to hit 1.5409 during European morning trade, still down 0.19%.
Cable was likely to find support 1.5332, the low of February 23 and resistance at 1.5539, the high of February 25.
In a report, market research group Markit said that its U.K. manufacturing purchasing managers' index rose to 54.1 last month from a reading of 53.1 in January. Analysts had expected the index to inch up to 53.4 in February.
Earlier Monday, the Nationwide Building Society said that U.K. house prices fell 0.1% last month, compared to expectations for a 0.3% rise, after an increase of 0.3% in January.
Year-on-year, U.K. house prices rose at a rate of 5.7% in Febuary, disappointing expectations for a 6.1% gain, after a 6.8% increase the previous month.
Meanwhile, the dollar remained supported after the Commerce Department reported on Friday that U.S. gross domestic product grew at an annual rate of 2.2% in the last three months of 2014, down from an initial estimate of 2.6% but ahead of expectations for a downward revision to 2.1% growth.
The greenback was also boosted after the February reading of the University of Michigan's consumer sentiment index was revised up to 95.4 from the preliminary reading of 93.6. While this was down from the previous months final reading of 98.1, it was still the second highest level since January 2007.
Sterling was also lower against the euro, with EUR/GBP rising 0.24% to 0.7265.
In the euro zone, Markit said the bloc's manufacturing PMI fell to 51.0 last month from 51.1 in January. Analysts had expected the index to remain unchanged in February.
Later in the day, the Institute of Supply Management was to report on U.S. manufacturing activity.