The British currency rose off eight-month lows on Thursday, after data showed that the U.K. trade deficit narrowed
more-than-expected in January and as sentiment on the greenback
weakened ahead of U.S. economic reports due later in the day.
GBP/USD hit 1.5014 during European morning trade, the session high; the pair subsequently consolidated at 1.4984, gaining 0.39%. Cable was likely to find support at 1.4891, Wednesday's low and an eight-month low and resistance at 1.5099, Wednesday's high.
Sterling was steady against the euro, with EUR/GBP at 0.7067.
The U.K. Office for National Statistics said in a report that the country's goods trade deficit narrowed to £8.41 billion in January from £9.93 billion in December, whose figure was revised from a previously estimated deficit of £10.15 billion, while analysts had expected the goods trade deficit to narrow to £9.7 billion in January.
The pound had weakened on Wednesday after data showed that U.K. manufacturing production declined 0.5% in January, disappointing expectations for an increase of 0.2%, while industrial production fell 0.1% in January, compared to expectations for a 0.2% gain.
In the meantime, the dollar came under pressure as market players anticipated data on U.S. retail sales and initial jobless claims due later in the day. The U.S. currency had rallied broadly on the back of last week's strong employment report.
