Forex Pros – The pound extended gains against the U.S. dollar on Tuesday, rising to a fresh daily high as a rally in commodities and stocks dampened demand for the safe haven greenback. GBP/USD hit 1.6208 during early U.S. trade, the daily high; the pair subsequently consolidated at 1.6196, gaining 0.46%. Cable was likely to find support at 1.5970, the low of April 1 and resistance at 1.6232, Monday’s high. The pound shrugged off a warning by Moody’s Investors Service that it had placed 14 British banks on review for possible downgrade as it reassesses the level of government support factored into their ratings. Meanwhile, official data showed that U.K. public sector borrowing rose to a record high of GBP7.7 billion in April, around GBP2.5 billion higher than the same month last year and the highest reading for a month of April on record. The pound was also fractionally higher against the euro, with EUR\/GBP dipping 0.01% to hit 0.8712. Also Tuesday, official data showed that U.S. new home sales rose unexpectedly last month, to hit a four-month high. The Commerce Department said sales increased 7.3% to a seasonally adjusted 323,000 unit annual rate, the highest level since December, from a slightly upwardly revised 301,000-unit pace in March. Analysts had expected the rate to remain unchanged in April.

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