Forexpros – The pound held gains against the U.S. dollar on Wednesday, tracking the euro’s gains but concerns over the prospect of further easing by the Bank of England weighed.
GBP/USD hit 1.5674 during early European trade, the daily high; the pair subsequently consolidated at 1.5664, easing up 0.16%.
Cable was likely to find support at 1.5525, Tuesday’s low and resistance at 1.5746, the high of September 21.
Market sentiment was boosted after European Commission President Jose Manuel Barroso said earlier that more would be done to tackle the debt crisis in the euro zone and indicated that the Commission was examining ways to beef up the region’s bailout fund, the European Financial Stability Facility.
But concerns over a lack of consensus among euro zone members on how best to address the financial crisis lingered, with Germany remaining opposed to enlarging the capacity of the EUR440 billion EFSF.
Sentiment on the pound was also weighed by ongoing speculation that the BoE may implement more monetary stimulus before the end of the year to boost the faltering U.K. economy.
Elsewhere, the pound was down against the euro, with EUR/GBP climbing 0.47% to hit 0.8728.
Later in the day, the U.S. was to publish government data on durable goods orders, while Federal Reserve Chairman Ben Bernanke was scheduled to speak.
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