Investing.com - The pound pushed higher against the dollar on Tuesday, but gains were held in check as investors remained cautious ahead of testimony on monetary policy by Federal Reserve Chair Janet Yellen.
GBP/USD hit 1.6440, the highest since January 31 and was last up 0.15% to 1.6425.
Cable was likely to find support at 1.6330 and resistance at 1.6497, the high of January 31.
Ms. Yellen was to testify on monetary policy and the outlook for the economy before the House Financial Services Committee later Tuesday.
The Fed chair was expected to reiterate that the bank will continue to scale back its asset purchase program as long as the economic recovery continues as expected, and to repeat that the bank will keep interest rates at low levels for longer.
The testimony is coming amid fresh concerns over the outlook for the U.S. recovery, following the weakest two-month stretch of job creation in three years in December and January.
Markets were also turning their attention to the Bank of England’s quarterly inflation report, due for release on Wednesday.
The bank was widely expected to announce adjustments to its forward guidance policy after recent data showed that the U.K. unemployment rate has fallen more quickly than the bank anticipated.
Elsewhere, sterling was slightly lower against the euro, with EUR/GBP easing up 0.13% to 0.8324.