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Forex - GBP/USD steady in cautious trade

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Investing.com - The pound was steady against the U.S. dollar in light trade on Tuesday, as investors remained cautious amid concerns future euro zone bank rescues could impose a burden on depositors.

GBP/USD hit 1.5207 during European morning trade, the session high; the pair subsequently consolidated at 1.5186, easing up 0.05%.

Cable was likely to find support at 1.5093, the low of March 21 and resistance at 1.5320, the high of February 22.

Markets were jittery after the head of the Eurogroup, Jeroen Dijsselbloem, said on Monday that the rescue program agreed for Cyprus represents a new model for resolving euro zone banking problems and other countries may have to restructure their banking sectors.

He later appeared to backtrack, saying Cyprus was a specific case with exceptional challenges.

Early Monday, euro zone finance ministers rubber stamped a EUR10 billion international bailout for Cyprus that will see the closure of the country's second largest lender Laiki Bank and inflict heavy losses deposits of more than EUR100,000.

Sterling found support last week after the annual U.K. budget on Wednesday contained a number of measures to drive economic growth.

In addition, Chancellor George Osborne updated the Bank of England's remit to allow it to use "unconventional monetary instruments" to support the economy but said the bank's inflation target will remain unchanged.

The pound was almost unchanged against the euro with EUR/GBP inching 0.08% higher, to hit 0.8475.

Later in the day, the U.S. was to release government reports on durable goods orders and new home sales as well as a report on consumer confidence.

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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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