Forexpros - The pound advanced to a four-and-a-half month high against the U.S. dollar on Tuesday, as the greenback remained under pressure after Federal Reserve Chairman Ben Bernanke struck a dovish tone in remarks on Monday.
GBP/USD hit 1.5998 during European morning trade, the pair’s highest since November 14; the pair subsequently consolidated at 1.5994, gaining 0.16%.
Cable was likely to find support at 1.5941, the session low and resistance at 1.6092, the high of November 14.
The dollar weakened broadly after Federal Reserve head Ben Bernanke said that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
Meanwhile, in the U.K., Bank of England policymaker David Miles said Monday that economic growth has stalled in the past six months, fuelling concerns that the central bank may resort to a fresh round of monetary easing to shore up the economy.
The pound was almost unchanged against the euro, with EUR/GBP inching up 0.02% to hit 0.8365.
Later in the day, the U.K. was to release industry data on retail sales, while the U.S. was to release a close watched report on consumer confidence, as well as industry data on house price inflation.
