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Forex - GBP/USD hits 2-day high as data shows U.K. growth

Published 07/06/2010, 03:41 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound rose to a 2-day high against the U.S. dollar on Tuesday, after a survey showed that the U.K. economy continued to grow in the second quarter.

GBP/USD hit 1.5207 during early European trade, the pair's highest since July 2; the pair subsequently consolidated at 1.5201, gaining 0.43%.

Cable was likely to find support at 1.5089, the low of July 5, and resistance at 1.5316, the high of May 3.

Late Monday, a survey by the British Chamber of Commerce predicted growth of between 0.6% and 0.7% for the quarter ending in June.

However, the BCC warned that serious concerns still remained over a sustained recovery and reported sluggish growth in retail and services, which account for around three quarters of the country's gross domestic product.

The pound was also up against the euro, with EUR/GBP shedding 0.07% to hit 0.8277.

Later in the day the U.S. was to produce closely watched data on its services sector.

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