Forexpros – The pound slipped against the U.S. dollar on Monday, pulling away from a one-month high, but sterling remained supported amid cautious hopes that European leaders will unveil a decisive plan to resolve the region’s debt crisis.
GBP/USD pulled back from 1.5848, the daily high, to hit 1.5804 during early European trade, slipping 0.10%.
Cable was likely to find support at 1.5664, last Thursday’s low and short-term resistance at 1.5851, Friday’s high and a one-month high.
Over the weekend, European financial ministers pledged to their G-20 counterparts to formulate a comprehensive plan to restructure Greek debt, recapitalize European banks and bolster the euro zone’s bailout fund.
European leaders may complete the rescue plan at a summit on October 23, in time to present to a meeting of G-20 leaders early next month.
But the pound remained vulnerable after the Bank of England earlier this month announced a second round of quantitative easing to shore up the faltering U.K. economy.
Earlier Monday, the Ernst & Young ITEM Club cut its 2011 GDP expectation to 0.9% from 1.4% forecast three months ago and also downgraded its forecast for 2012.
The pound was also lower against the euro, with EUR/GBP rising 0.20% to hit 0.8791.
Later in the day, the U.S. was to publish official data on industrial production, as well as a report on manufacturing activity in New York state.
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