Forex Pros – The pound extended gains against the U.S. dollar on Monday, as higher oil prices, fuelled by ongoing tensions in the Middle East, saw the dollar come under heavy selling pressure. GBP/USD hit 1.6244 during European afternoon trade, the pair’s highest since Thursday; the pair subsequently consolidated at 1.6237, advancing 0.73%. Cable was likely to find support at 1.6070, the days low and resistance at 1.6253, last Thursday’s high. Oil prices were trading close to a 29-month high on Monday, after the anti-government demonstrations that swept the Middle East over the past month spread to the gulf state of Oman. The devlopment triggered concerns over the security of oil supplies from the Middle East, after uprisings in Libya dramatically reduced exports from North Africa. The dollar has been hurt by the recent spike in oil prices amid fears over the impact on the U.S. economy, given its strong reliance on consumer spending for growth. The pound was also up against the euro, with EUR/GBP slipping 0.14% to hit 0.8521. Later in the day, the U.S. was to publish industry data on pending home sales as well as a report on manufacturing activity in the in the Chicago area. The U.S. was also to release official data on personal consumption expenditure and consumer price inflation.

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