Forex - GBP/USD slips as Greece uncertainty weighs

Forexpros - The pound edged lower against the U.S. dollar on Thursday, pulling back from an almost two-and-a-half month high as investors remained cautious while talks on a Greek debt swap deal remained unresolved.

GBP/USD pulled away from 1.5858, the session high, to hit 1.5818 during European morning trade, dipping 0.09%.

Cable was likely to find support at 1.5705, Wednesday’s low and resistance at 1.5882, Wednesday’s high and a two-and-a-half month high.

The pound strengthened against the greenback after data on Wednesday showed that the manufacturing sector in the U.K. expanded at the fastest pace in eight months in January, as output grew at the fastest rate in 10 months and new orders rose.

The report eased concerns over the outlook for the U.K. recovery after data last week showed that the country’s economy contracted in the fourth quarter, but did little to quell speculation that the Bank of England may implement fresh easing measures.

Risk appetite was also bolstered after manufacturing data from Germany, the U.S. and China remained resilient, while expectations that the Federal Reserve will keep rates on hold for another two years weighed on the greenback.  

Meanwhile, European officials have indicated in recent days that negotiations with Greece’s private creditors on a debt restructuring deal are almost concluded, but the second bailout and any public sector involvement must also be agreed upon before a deal can be announced.

The pound was higher against the euro, with EUR/GBP slipping 0.16% to hit 0.8298.

Later in the day, the U.K. was to release data on activity in the construction sector, while Fed Chairman Ben Bernanke was to testify before the House of Representatives budget committee. The U.S. was also to produce government data on initial jobless claims.