Forexpros – The pound edged higher against the U.S. dollar on Wednesday, as market sentiment strengthened amid hopes for progress in tackling the euro zone’s sovereign debt crisis at this week’s key European Union summit.
GBP/USD hit 1.5638 during European morning trade, the daily high; the pair subsequently consolidated at 1.5609, advancing 0.06%.
Cable was likely to find support at 1.5525, the low of November 30 and resistance at 1.5716, the high of December 5.
Investors hoped to see European policymakers take decisive action to contain the region’s debt crisis, after a first step in that direction by France and Germany earlier in the week.
European leaders are to discuss proposed changes to EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc.
Meanwhile, markets were also eyeing the European Central Bank’s policy decision on Thursday, as the central bank is seen likely to cut interest rates by 0.25% to 1%.
Elsewhere, the pound was lower against the euro with EUR/GBP climbing 0.22%, to hit 0.8611.
Later in the day, the U.K. was to publish official data on manufacturing and industrial production, as well as the National Institute of Economic and Social Research’s quarterly GDP estimate.
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