Forex Pros — The pound eased off a four-week high against the U.S. dollar on Tuesday, as a relief rally sparked by reports that Germany could make concessions to facilitate a new bailout package for Greece waned ahead of the release of U.S. data.
GBP/USD pulled away from1.6547 to hit 1.6498 during European early afternoon trade, still up 0.15% on the day.
Cable was likely to find support at 1.6377, last Friday’s low and short-term resistance at 1.6573, the high of May 4.
Earlier in the day, the Wall Street Journal reported that Germany may consider abandoning a push to reschedule Greek debt early, which may pave the way for Greece to receive a new package of financial aid.
Elsewhere, concerns over the U.K.’s fragile economic recovery were underlined on Monday after industry data showed house prices falling at their fastest annual pace in over one-and-a-half years in May, while the British Chambers of Commerce cut its growth forecast for the year.
The data reinforced expectations that the Bank of England is likely to keep interest rates on hold this year.
Meanwhile, the pound was lower against the euro, with EUR/GBP rising 0.60% to hit 0.8721.
Later Tuesday, the U.S. was to publish industry data on house price inflation and consumer confidence, as well as an index of manufacturing activity in the Chicago area.
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