Forexpros – The pound pulled back from a session high against the U.S. dollar on Tuesday, as fresh concerns over high Spanish bond yields pushed investors towards the safety of the greenback.
GBP/USD pulled back from 1.5409, the session high, to hit 1.5344 during European morning trade, shedding 0.24%.
Cable was likely to find support at 1.5267, Friday’s low and a four-and-a-half month low and resistance at 1.5414, Monday’s high.
The pound’s losses came after Spain’s Treasury Minister Cristobal Montoro said that financial markets were currently closed to Spain because of the high level of the country’s borrowing costs.
The comments sparked fresh concerns that Madrid will be forced to seek an international bailout in order to shore up its fragile banking system.
The pound had climbed to a session high against the greenback earlier, amid hopes for a breakthrough on the debt crisis in the euro zone, ahead of a teleconference of finance ministers from the Group of Seven industrialized nations later in the day.
Sterling was higher against the euro, with EUR/GBP slipping 0.13% to hit 0.8113.
Later Tuesday, the Institute for Supply Management was to release a report on U.S. non-manufacturing activity, while markets in the U.K. were to remain closed for a national holiday.
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