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Forex - GBP/USD holds gains as market sentiment remains upbeat

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Forexpros - The pound held early gains against the U.S. dollar in holiday thinned trade on Monday, as market sentiment remained positive after comments by Federal Reserve Chairman Ben Bernanke eased concerns over the outlook for U.S. growth.

GBP/USD hit 1.6409 during European afternoon trade, the pair's highest since August 24; the pair subsequently consolidated at 1.6397, gaining 0.18%.

Cable was likely to find support at 1.6257, last Thursday's low and resistance at 1.6476, the high of August 16.

At the Fed's annual gathering on Friday, Bernanke said that the U.S. economy was recovering and the Fed still had a "range of tools" it could use to bolster growth.

Bernanke also said that the bank's September policy-setting meeting would run for two days instead of one, to give policymakers more time to consider their options.

Trade volumes remained light as markets in London were closed for the summer bank holiday.

The pound was also higher against the euro, with EUR/GBP slipping 0.15% to hit 0.8843.

Later Monday, the U.S. was to release industry data on pending home sales.

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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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