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Forex - GBP/USD trims gains, pulling back from 2-day high

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Forexpros - The pound trimmed gains against the U.S. dollar on Tuesday, pulling back from a two-day high, despite U.K. data showing that factory orders unexpectedly rose this month, while mortgage approvals hit a one-year high in July.

GBP/USD pulled back from 1.6571, the pair's highest since Friday, to hit 1.6516 during European afternoon trade, still up 0.38% over the day.

Cable was likely to find support at 1.6435, Monday's low and a two-day low and resistance at 1.6617, the high of August 19 and a three-and-a-half month high.

The Confederation for British Industry said earlier that its balance of total industrial orders rose to 1 in August from minus 10 in July, confounding expectations for a drop to minus 13.

However, the CBI warned that risks to manufacturing activity and business confidence have increased, "due to market volatility and the recalibration of growth expectations world wide."

Separately, the British Bankers Association said the number of mortgage approvals for house purchases rose to 33,417 in July from 32,123 the previous month, the highest level since June 2010.

Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.34% to hit 0.8756.

Later Tuesday, the U.S. was to release official data on new 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.


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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