Forexpros – The pound was higher against the U.S. dollar on Wednesday, trimming some of the previous day’s losses as risk aversion waned, supporting demand for sterling.
GBP/USD hit 1.6034 during European morning trade, the daily high; the pair subsequently consolidated at 1.6028, gaining 0.49%.
Cable was likely to find support at 1.5889, Tuesday’s low and resistance at 1.6151, the high of October 28 and an almost seven-week high.
The pound fell sharply against the U.S. dollar on Tuesday, as the announcement of a referendum on Greece’s bailout program sparked a rally in safe-haven assets.
The pound was also weighed after data showing that manufacturing activity in the U.K. fell to a 28-month low in October overshadowed better-than-expected data on third quarter growth.
Meanwhile, the pound was slightly lower against the euro, with EUR/GBP rising 0.14% to hit 0.8603.
Later Wednesday, the U.K. was to release data on construction activity, while the U.S. was to release private sector data on non-farm payrolls. In addition, the Federal Reserve was to conclude its policy-setting meeting; Fed Chairman Ben Bernanke was to conduct the bank’s post-policy meeting press conference.
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