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Forex - GBP/USD eases off 7-day low but upside limited

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Forexpros - The pound inched higher against the U.S. dollar on Thursday, easing off a seven-day low but the pair's upside looked limited amid uncertainty ahead of a speech by Federal Reserve Chairman Ben Bernanke.

GBP/USD pulled back from 1.6353, the pair's lowest since August 16, to hit 1.6386 during early European trade, easing up 0.07%.

Cable was likely to find short-term support at 1.6322, the low of August 16 and resistance at 1.6533, Wednesday's high.

The pound fell sharply on Wednesday after data showing that U.S. durable goods orders rose the most in four months in July, while core durable goods orders rose unexpectedly.

But the upbeat data triggered concerns that Fed Chair Bernanke would not outline a fresh round of stimulus measures for the U.S. economy in a speech at the central bank's conference on Friday.

Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.25% to hit 0.8824.

Also Thursday, U.K. building society Nationwide said its index of consumer confidence index fell to 49 in July, from a reading of 51 the previous month.

Commenting on the report, Robert Gardner, Nationwide's chief economist, said "It is unlikely that we will see any considerable improvement in confidence in the remainder of 2011."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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