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Forex - GBP/USD hits fresh 5-month high after weak U.S. data

Published 07/28/2010, 10:34 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound hit a fresh 5-month high against the U.S. dollar on Wednesday, following worse-than-expected U.S. data on durable goods orders.

GBP/USD hit 1.5638 during European afternoon trade, the pair's highest since Feb. 18; the pair subsequently consolidated at 1.5621, gaining 0.14%.

Cable was likely to find support at 1.5442, Tuesday's low and resistance at 1.5687, the high of Feb. 18.

Earlier in the day, the U.S. Census Bureau said core durable goods orders declined by a seasonally adjusted 0.6% in June, after rising by a revised 1.6% in May.

Analysts had expected core durable goods orders rise 0.6% in June.

The pound was also up against the euro, with EUR/GBP shedding 0.01% to hit 0.8332.

Also Wednesday, the Bank of England's Governor, Mervyn King said the U.K.'s financial crisis was "far from over", adding, "the wider economic problems around the world underline the fact that we cannot be confident that the recovery in demand, output and employment here in the U.K. will be sustained.”


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