Investing.com - The pound hit session highs against the U.S. dollar on Wednesday, as hopes for an agreement on the U.S. fiscal cliff bolstered sentiment and after Bank of England minutes showed that only one policymaker called for more easing this month.
GBP/USD hit 1.6298 during European morning trade, the pair's highest since September 21; the pair subsequently consolidated at 1.6294, gaining 0.26%.
Cable was likely to find support at 1.6244, the session low and resistance at 1.6308, the high of September 21 and a five-month high.
Market sentiment was boosted by signs of progress in negotiations aimed at avoiding automatic tax hikes and spending cuts due to take effect on January 1, which investors fear could threaten U.S. and global growth.
In the euro zone, a report showing that the Ifo German business climate index improved in December helped risk appetite.
The pound found support after the minutes of the BoE's December meeting showed that the monetary policy committee was split eight-to-one, with just one member in favor of further easing, while the vote to leave interest rates unchanged at 0.5% was unanimous.
Sterling was little changed against the euro, with EUR/GBP inching up 0.03% to 0.8141.
Later Wednesday the U.S. was to publish government data on building permits, housing starts and crude oil stockpiles.
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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.
