Investing.com - The pound held gains against the U.S. dollar on Wednesday, although sterling's upside seemed likely to remain limited ahead of U.K. data on first quarter economic growth on Thursday amid ongoing concerns over the outlook for the economic recovery.
GBP/USD hit 1.5288 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.5277, adding 0.26%.
Cable was likely to find support at 1.5195, Tuesday’s low and near-term resistance at 1.5296, Tuesday’s high.
Market sentiment was boosted as European equities climbed amid growing expectations that the European Central Bank will cut interest rates, while hopes that Italy will soon have a government also lent support.
Earlier Wednesday, Enrico Letta, deputy leader of the Democratic Party was asked to form Italy's next government by President Giorgio Napolitano.
The news offset data showing that the Ifo index of German business climate fell to a four month low of 104.4 in April from 106.7 in March.
Meanwhile, the pound found support after the Bank of England announced that it is extending its Funding for Lending scheme to January 2015 amid concerns over the outlook for growth in the U.K.
But investors remained wary ahead of preliminary data on U.K. first quarter gross domestic product on Thursday amid cautious optimism that the economy would narrowly avoid a triple-dip recession.
Sterling was higher against the euro, with EUR/GBP shedding 0.28% to hit 0.8509.
In the U.S., the Commerce Department said durable goods orders dropped 5.7% last month, worse than expectations for a decline of 2.8%.
Core durable goods orders, which exclude transportation items, fell 1.4% in March, compared to expectations for a 0.5% increase.
GBP/USD hit 1.5288 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.5277, adding 0.26%.
Cable was likely to find support at 1.5195, Tuesday’s low and near-term resistance at 1.5296, Tuesday’s high.
Market sentiment was boosted as European equities climbed amid growing expectations that the European Central Bank will cut interest rates, while hopes that Italy will soon have a government also lent support.
Earlier Wednesday, Enrico Letta, deputy leader of the Democratic Party was asked to form Italy's next government by President Giorgio Napolitano.
The news offset data showing that the Ifo index of German business climate fell to a four month low of 104.4 in April from 106.7 in March.
Meanwhile, the pound found support after the Bank of England announced that it is extending its Funding for Lending scheme to January 2015 amid concerns over the outlook for growth in the U.K.
But investors remained wary ahead of preliminary data on U.K. first quarter gross domestic product on Thursday amid cautious optimism that the economy would narrowly avoid a triple-dip recession.
Sterling was higher against the euro, with EUR/GBP shedding 0.28% to hit 0.8509.
In the U.S., the Commerce Department said durable goods orders dropped 5.7% last month, worse than expectations for a decline of 2.8%.
Core durable goods orders, which exclude transportation items, fell 1.4% in March, compared to expectations for a 0.5% increase.