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Forex - GBP/USD edges lower, weighed by Mideast tensions

Published 02/21/2011, 07:22 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound edged lower against the U.S. dollar on Monday, as concerns arising from escalating tensions in North Africa and the Middle East weighed on risk sentiment.

GBP/USD hit 1.6206 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.6222, shedding 0.18%.

Cable was likely to find support at 1.6148, Friday’s low and resistance at 1.627, the high of February 3 and a three-month high.

Earlier in the day, industry data showed that house prices in the U.K. climbed for a second month in February.

Rightmove Plc, the operator of the U.K.’s biggest property website, said average asking prices in England and Wales rose 3.1% from January. The average number of properties for sale per estate agent dropped to a 10-month low, propping up values. In London, prices rose 4.2% on the month.

The pound rallied last week after a surge in inflation and retail sales boosted speculation the Bank of England will raise interest rates in the coming months.

The pound was also down against the euro, with EUR/GBP easing up 0.11% to hit 0.8433.

Also Monday, markets in the U.S. were to remain closed for the President’s Day holiday.

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