NEW YORK (Forex News Now) – The pound gave up more of its earlier gains versus the dollar on Tuesday, as traders awaited an industry report on the U.K. retail sector.
In late U.S. currency trading, GBP/USD traded at 1.5143, after retreating from a daily high of 1.5227, close to a 2-month high.
Meanwhile, the British Retail Consortium was set to publish data on U.K. shop price inflation. The report precedes a key interest rate decision by the Bank of England by two days; as such, traders are likely to latch onto it for clues to the BoE move.
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According to forex analysis, GBP/USD is likely to touch immediate support around the daily low, 1.5081, and encounter resistance around the high of May 3, 1.5316.
Sterling’s earlier gains came after the Bank of France chief, Christian Noyer, said French banks were likely to pass Europe-wide stress tests, and an industry report showed that U.K. registrations of new cars rose 10.8% in June, in a 12th consecutive monthly increase.