GBP/USD bounces as Cameron set to outline U.K. growth plan

NEW YORK (Forex News Now) – Sterling bounced against the dollar on Monday, as British Prime Minister David Cameron was set to unveil his government’s strategy to secure the U.K. economic recovery.

In late European currency market trading, GBP/USD hit 1.574, up 0.36 percent on the day.

Cameron was later due to outline his plans for U.K. economic growth in a speech to business leaders, amid criticism that savage spending cuts announced last week would cause Britain to slide into a “double dip” recession.

According to GBP USD analysis, cable was likely to touch support around the low of Sept. 21, 1.5504, and encounter resistance around the high of Oct. 19, 1.5942.

The pound’s gain also came after a weekend meeting of global finance chiefs vowed to avoid a currency war that could derail the global economic recovery. Meanwhile, FX traders awaited a speech from the Federal Reserve chairman, Ben Bernanke, and a key report on U.S. existing home sales.

Elsewhere, sterling continued its slide versus the euro: EUR/GBP traded at 0.8923, up 0.3 percent, according to intraday analysis.