On Wednesday the pound climbed to nearly two-month highs against the greenback, after data showed that last month U.K. mortgage approvals rose
more-than-expected, while comments by Federal Reserve Chair
Janet Yellen put the U.S. dollar under the pressure.
GBP/USD hit 1.5539 during European morning trade, the pair's highest since January 2; the pair subsequently consolidated at 1.5509, gaining 0.36%. Cable was likely to find support at 1.5401, Tuesday's low and resistance at 1.5586, the high of January 2.
The British Bankers' Association said in a report that mortgage approvals rose by 36,400 in January, outplaying expectations for an increase of 36,200. December's figure was revised to a 35,800 gain from a previously estimated rise of 35,700.
In the meantime, the greenback was pressured after Fed Chair Yellen said it was "unlikely" that economic conditions would warrant an interest rate increase for "at least the next couple of FOMC meetings".
Later in the day, the U.S. was to release data on new home sales.
Sterling was steady against the euro, with EUR/GBP at 0.7332.
The single currency remained supported after Greece’s package of economic reforms was approved by its euro zone creditors on Tuesday, securing Athens an extension of its bailout for another four months.
The package of measures includes taxation and public spending reforms and consolidating pension funds to reduce costs. Athens also pledged not to unwind state privatization programs and to stick to budget targets.
