Forex Pros –The pound erased losses against the U.S. dollar on Wednesday, as hopes that Greece’s parliament would adopt austerity measures designed to prevent the country from defaulting on its debts lifted market sentiment.
GBP/USD clawed back up from 1.5971, the daily low, to hit 1.6030 during European afternoon trade, gaining 0.19%.
Cable was likely to find support at 1.5910, Tuesday’s low and a five-month low and resistance at 1.6074, the high of June 23.
Later Wednesday, Greece’s parliament was due to vote on a national austerity plan, needed to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.
Ahead of the vote, one of three deputies from Prime Minister George Papandreou’s ruling Socialist party backtracked and said he would support the austerity plan.
But the pound’s gains remained limited amid speculation that the Bank of England could resume its quantitative easing program as some policymakers believed the outlook for growth remained weak.
Meanwhile, the pound was lower against the euro, with EUR/GBP rising 0.17% to hit 0.8997.
Also Wednesday, the U.S. was to publish industry data on pending home sales.
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