Forexpros – The pound pulled back from a four-month low against the U.S. dollar on Thursday, but remained vulnerable to further losses as sustained concerns over Spain’s high borrowing costs and its ailing banking sector weighed on risk appetite.
GBP/USD retreated from 1.2358, the pair’s lowest since January 19, to hit 1.2409 during European morning trade, gaining 0.19%.
Cable was likely to find near-term support at 1.5414, the low of January 19 and resistance at 1.5577, the high of January 20.
Market sentiment remained on the back foot as fears that elevated Spanish bond yields and the high cost of bank rescues could force Madrid to seek an international bailout.
The yield on Spanish 10-year bonds rose to 6.67% earlier, nearing the critical 7% threshold that preceded bailouts in Greece, Ireland and Portugal.
Meanwhile, uncertainty over the outcome of Greek elections weighed after an opinion poll on Wednesday showed that anti-bailout party Syriza had gained a narrow lead ahead of the June 17 vote.
Investors were also awaiting the outcome of an Irish referendum on the European Union’s fiscal treaty.
The pound was lower against the euro, with EUR/GBP adding 0.21% to hit 0.8006.
Later in the day, the U.S. was to release preliminary data on first quarter economic growth, as well as reports on private sector employment and initial jobless claims and data on business activity in the Chicago area.
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