Investing.com - The pound slid lower against the dollar on Monday as demand for the safe-haven greenback remained supported after a controversial bailout deal for Cyprus rekindled fears over the debt crisis in the euro zone.
GBP/USD hit 1.5073 during European afternoon trade, the session low; the pair subsequently consolidated at 1.5105, dipping 0.04%.
Cable was likely to find support at 1.5014, the low of March 6 and resistance at 1.5175, Friday's high.
On Saturday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. In return, the country's creditors demanded that bank customers must pay a one-time tax on deposits.
The agreement marked the first time since the onset of the euro zone debt crisis that depositors have been forced to take a haircut in return for financial aid and triggered a run on cash machines in Cyprus over the weekend.
Market sentiment found some support following reports that the government in Cyprus was preparing a new deposit tax proposal to lessen the impact on smaller depositors.
Elsewhere, sterling was sharply higher against the euro, with EUR/GBP dropping 1.12% to 0.8556.
Also Monday, official data showed that the euro zone trade surplus narrowed to EUR9 billion in January, compared to expectations for a deficit of EUR10.9 billion.
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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.
