Topic: COZfx: The Pound pares gains after downbeat UK data
COZforex: The pound pared gains against the US dollar on Tuesday, after the release of downbeat UK mortgage approvals data, while investors eyed a string of US economic reports to be published later in the day.
GBP/USD pulled away from 1.6882, the pair's highest since May 22, to hit 1.6853 during European still up 0.06%. COZforex senior currency strategist Ian • Quigley said, GBP/USD is predicted to find support at 1.6838, and a decline through could take it to the next support line of 1.6813. Meanwhile, the pair is predicted to find its first resistance at 1.6879, and a rise through could take it to the next resistance line of 1.6895.
Industry data earlier showed that UK mortgage approvals rise by 42,200 last month, compared to expectations for a 45,200 increase. Mortgage approvals in March were revised down to a 45,000 rise from a previously estimated 45,900 increase.
Demand for sterling continued to be underpinned after Bank of England Deputy Governor Charles Bean said Saturday that UK interest rates could start rising before next spring.
The pound also remained supported after last week's minutes of the BoE’s May meeting indicated that some policymakers believe the decision on when to raise rates is "becoming more balanced," indicating that they are becoming more hawkish about the argument for hiking interest rates.
Later in the day, the US was to produce data on durable goods orders, house price inflation and consumer confidence.
(COZ forex UK)