Investing.com - The pound edged higher against the U.S. dollar in thin trade on Monday, pulling away from an eight-day low but sterling remained under pressure as renewed fears over the debt crisis in the euro zone weighed on market sentiment.
GBP/USD hit 1.6174 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.6160, adding 0.08%.
Cable was likely to find support at 1.6108, the low of April 24 and resistance at 1.6201, the high of May 4.
Sentiment found mild support after official data showed that German factory orders rose by a seasonally adjusted 2.2% in March, easily surpassing expectations for a 0.5% increase.
But investors remained cautious after weekend election results in Greece threw the future of the country’s international bailout agreement into doubt and fuelled fears over a possible Greek exit from the euro zone.
Neither of the country’s two pro-bailout parties secured enough votes to form a government, as voters favored smaller parties who campaigned against harsh austerity measures.
In France, President Nicolas Sarkozy was defeated by socialist candidate François Hollande, who has said he wants to renegotiate the euro zone fiscal pact in order to stimulate growth in the region.
Elsewhere, the pound was trading close to three-and-a-half year high, with EUR/GBP dropping 0.46%, to hit 0.8064.
Trading volumes were expected to remain light on Monday as markets in the U.K. were closed for a bank holiday.
GBP/USD hit 1.6174 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.6160, adding 0.08%.
Cable was likely to find support at 1.6108, the low of April 24 and resistance at 1.6201, the high of May 4.
Sentiment found mild support after official data showed that German factory orders rose by a seasonally adjusted 2.2% in March, easily surpassing expectations for a 0.5% increase.
But investors remained cautious after weekend election results in Greece threw the future of the country’s international bailout agreement into doubt and fuelled fears over a possible Greek exit from the euro zone.
Neither of the country’s two pro-bailout parties secured enough votes to form a government, as voters favored smaller parties who campaigned against harsh austerity measures.
In France, President Nicolas Sarkozy was defeated by socialist candidate François Hollande, who has said he wants to renegotiate the euro zone fiscal pact in order to stimulate growth in the region.
Elsewhere, the pound was trading close to three-and-a-half year high, with EUR/GBP dropping 0.46%, to hit 0.8064.
Trading volumes were expected to remain light on Monday as markets in the U.K. were closed for a bank holiday.