Forex – GBP/USD slips but remains near 6-week peak

© Reuters. Pound loses some ground but downside seen limited – The pound slipped lower against the U.S. dollar on Friday, but was still hovering close to a six-week high after U.K. economic growth data was in line with expectations and amid expectations for tighter monetary policy in the U.K.

hit 1.2985 during European morning trade, the session low; the pair subsequently consolidated at 1.2993, down 0.11%.

Cable was likely to find support at 1.2938, Thursday’s low and resistance at 1.3036, the high of May 23.

The U.K. Office for National Statistics said rose 0.2% in the first quarter, in line with expectations and a previous estimate. Year-on-year, the U.K. economy 2.0%.

A separate report showed that the widened to £16.9 billion in the first quarter from £12.1 billion in the three months to December.

Analysts had expected the current account deficit to widen even more to £17.3 billion in the last quarter.

The pound strengthened broadly after that some removal of monetary stimulus is likely to become necessary as spare capacity in the economy erodes.

The BoE’s monetary policy committee was split 5-3 at its meeting earlier this month on whether to raise interest rates from a record-low 0.25%. Carney voted to keep rates unchanged.

Sterling was higher against the euro, with shedding 0.27% to 0.8773.

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