Forexpros – The pound rebounded from a two-month low against the U.S. dollar on Wednesday, as market sentiment strengthened after upbeat data form the U.S. and Australia.
GBP/USD hit 1.6040 during early European trade, the daily high; the pair subsequently consolidated at 1.5984, gaining 0.25%.
Cable was likely to find support at 1.5920, Tuesday’s low and a two-month low and resistance at 1.6166, Tuesday’s high.
Market sentiment was boosted after data on Tuesday showed that activity in the U.S. service sector expanded unexpectedly last month.
Earlier Wednesday, official data showed that Australia’s economy grew at the fastest rate in four years in the second quarter.
But investors remained wary amid ongoing concerns over the sovereign debt crisis in the euro zone, ahead of a vote in Germany’s constitutional court on the legality of the bailout for Greece and fears over a renewed recession in the U.S.
Meanwhile, the pound was lower against the euro, with EUR/GBP rising 0.33% to hit 0.8808.
Later in the day, the U.K. was to publish official data on manufacturing production. In addition, Federal Reserve Bank of Chicago President Charles Evans was to speak. The Fed was also to publish its beige book, which looks at regional economic conditions.
Forexpros
