Forex - GBP/USD climbs on U.K. retail sales, Europe hopes

Forex Pros – Sterling climbed versus the U.S. dollar on Thursday, rising from a 3-day low on strong U.K. retail sales data and amid hopes that euro zone nations would be able to resolve the region's debt crisis.

GBP/USD advanced 0.55% to hit 1.4813 during European morning trade, after rising from 1.4645, the pair's lowest since Monday.

Cable was likely to find support around 1.4509, the low of June 10, and resistance at 1.5045, the high of May 12.

EU leaders on Thursday began talks on ways to strengthen budget discipline and economic policy coordination. The talks came after sterling and the euro fell on Wednesday amid fresh fears over Spain's debt and banking sector.

Also Thursday, official data showed that U.K. retail sales climbed in May at faster rate than forecast. In a report, the U.K. statistics agency said total sales volume increased 0.6% during May from a month earlier, after growth of 0.3% during April. Economists had expected more modest growth of 0.1% during May.

The pound also rose versus the yen on Thursday, with GBP/JPY gaining 0.41% to reach 135.26.

The British Prime Minister, David Cameron, said during the summit on Thursday that he welcomed European Commission President Jose Manuel Barroso's support for deregulation.

"I think what he has just said about the importance of getting our public finances in order, that there can be no growth without confidence and that getting our public finances in order is key to confidence, is absolutely right," Reuters quoted the U.K. leader as saying.