Investing.com - The pound extended gains against the dollar on Tuesday, rising to session highs, following stronger than forecast data on U.K. mortgage approvals and retail sales.
GBP/USD hit 1.6718, the highest since Friday and was last up 0.35% to 1.6711.
Cable was likely to find support at 1.6620 and resistance at 1.6775.
Sterling was boosted after data from the British Bankers Association on Tuesday 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.
Market participants were looking ahead to U.S. reports on house prices and consumer confidence due out later in the session, amid concerns over the outlook for the economic recovery.
Investors remained cautious after a recent series of disappointing U.S. economic indicators, including reports on jobs growth, retail sales and housing sparked concerns that the economic recovery has lost momentum since the end of last year.
Elsewhere, sterling was also higher against the euro, with EUR/GBP down 0.22% to 0.8229.
The euro remained lower 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.