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Forex - GBP/USD pushes higher, gains capped

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Investing.com - The pound pushed higher against the dollar on Monday as investors took profits following the dollar's recent gains, but gains looked set to remain limited amid expectations that the Federal Reserve will soon start to pull back stimulus measures.

GBP/USD hit 1.4914 during European afternoon trade, the session high; the pair subsequently consolidated at 1.4908, gaining 0.12%.

Cable was likely to find near-term support at 1.4856, Friday's low and a four-month trough and resistance at 1.4950.

Demand for the dollar continued to be underpinned after official data showed that the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists.

May's figure was revised up to 195,000 from a previously reported 175,000. The unemployment rate remained unchanged at 7.6% in June.

The pound remained under pressure after falling more than 1% against the dollar on Thursday after the Bank of England indicated that interest rates are likely to remain at record low levels, given weakness in the U.K.'s economic recovery.

Elsewhere, sterling was fractionally lower against the euro, with EUR/GBP inching up 0.03% to 0.8617.

Sentiment on the single currency remained fragile after European Central Bank President Mario Draghi said last week that the bank expects to maintain interest rates at current or lower levels for an "extended" period of time.

The eurogroup of euro zone finance ministers were to hold talks in Brussels later Monday, while ECB President Mario Draghi was to testify before the committee on Economic and Monetary Affairs in the European Parliament.

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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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