Forexpros – The pound trimmed gains against the U.S. dollar on Tuesday, as uncertainty over Greece’s ability to implement heavy austerity measures voted on Sunday weighed on investor confidence.
GBP/USD pulled back from 1.5828, the daily high, to hit 1.5779 during U.S. morning trade, still up 0.15%.
Cable was likely to find support at 1.5729, the low of February 6 and resistance at 1.5849, the high of February 10.
The pound tracked the euro higher earlier after Greece’s parliament voted a package of wage, pension and job cuts designed to help secure the country’s second bailout package ahead of a March bond redemption.
Euro zone finance ministers are scheduled to meet on Wednesday to discuss the approval of Greece’s financial aid. However, Athens is expected to explain how EUR325 million of this year’s total budget cuts will be achieved before the ministers agree to the 130 billion euro bailout.
While German Chancellor welcomed Sunday’s vote, saying it shows “the will and the readiness of the Greeks to undertake major efforts of their own,” Finance Minister Wolfgang Schaeuble said that Greek promises on austerity measures were no longer good enough because so many vows had been broken.
Elsewhere, sterling was almost unchanged against the euro with EUR/GBP inching 0.01% higher, to hit 0.8376.
Later in the day, U.S. President Barack Obama was to present his annual budget, including a USD4 trillion plan to create jobs while narrowing the federal budget deficit.
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