Forexpros – The pound edged higher against the U.S. dollar on Thursday, tracking gains in the euro as upbeat German business confidence data supported demand for riskier assets.
GBP/USD hit 1.5566 during European morning trade, the daily high; the pair subsequently consolidated at 1.5554, rising 0.19%.
Cable was likely to find short-term support at 1.5494, Wednesday’s low and a seven-week low and resistance at 1.5655, Wednesday’s high.
The pound tracked modest gains in the euro after a report showed that German business confidence improved unexpectedly in November, indicating that the euro zone’s largest economy is coping with the region’s debt crisis better than experts had feared.
Market sentiment was hit on Wednesday after the least successful German bond sale since the launch of the single currency sparked concerns over contagion to core euro zone economies.
Later in the day, German, French and Italian leaders were to meet to discuss ways to deal with the euro zone’s worsening financial troubles.
Meanwhile, the pound was lower against the euro, with EUR/GBP rising 0.18% to hit 0.8608.
Later in the day, the U.K. was to release revised data on third quarter GDP. Also Thursday, markets in the U.S. were to remain closed for Thanksgiving.
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