Forexpros – The pound was higher against the U.S. dollar on Thursday, as market sentiment rebounded in holiday trade and investors eyed a final report on third-quarter U.K. gross domestic product.
GBP/USD hit 1.5729 during European morning trade, the daily high; the pair subsequently consolidated at 1.5724, climbing 0.29%.
Cable was likely to find support at 1.5609, the low of December 8 and resistance at 1.5812, the high of November 17.
Many traders have closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing the volatility.
Meanwhile, investors remained cautious as the European Central Bank failed to convince markets that its unprecedented three-year loan of EUR489.19 billion would improve banks’ prospects in the euro zone.
The amount allotted was the largest ever for a longer-term refinancing operation by the ECB and was met with an unexpectedly heavy demand from 523 European lenders, underlining concerns over the scale of the financial crisis in the euro zone.
Elsewhere, sterling was lower against the euro with EUR/GBP advancing 0.12%, to hit 0.8335.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on third quarter GDP. The University of Michigan was also to release revised data on consumer sentiment and inflation expectations.
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