The British pound strengthened against the other major currencies in the early European session on Tuesday, after data showed that U.K. economy grew more than the prior estimate in the fourth quarter.
Data from the Office for National Statistics showed that U.K.’s gross domestic product grew 0.6 percent sequentially in the fourth quarter, revised up from 0.5 percent published on February 26. The growth was thus unchanged from the 0.6 percent expansion seen in the third quarter.
Similarly, the annual growth for the fourth quarter was revised to 3 percent from 2.7 percent. The growth rate accelerated from 2.8 percent in the prior quarter.
The pound rose to an 8-day high of 0.7260 against the euro and a 1-week high of 1.4403 against the Swiss franc, from early lows of 0.7321 and 1.4296, respectively.
Against the U.S. dollar and the yen, the pound edged up to 1.4791 and 177.72 from early lows of 1.4754 and 177.18, respectively.
If the pound extends its uptrend, it is likely to find resistance around 0.70 against the euro, 1.47 against the franc, 1.51 against the greenback and 179.50 against the yen.
The material has been provided by InstaForex Company – www.instaforex.com