Investing.com - The pound slipped lower against the U.S. dollar on Wednesday, after data showed that U.K. manufacturing activity expanded at the slowest rate in 26 months in June, while Greek debt concerns continued to support demand for the safe-haven greenback.
GBP/USD hit 1.5676 during European morning trade, the pair's lowest since June 29; the pair subsequently consolidated at 1.5677, shedding 0.21%.
Cable was likely to find support at 1.5622, the low of June 17 and resistance at 1.5788, the high of June 29.
Research group Markit reported on Wednesday that the U.K. manufacturing purchasing managers' index fell to 51.4 last month from 51.9 in May, whose figure was revised from a previously estimated reading of 52.0.
Analysts had expected the index to rise to 52.5 in June.
Meanwhile, the dollar remained supported after the International Monetary Funf confirmed that the Greek government failed to make a scheduled €1.6 billion loan repayment by close of business on Tuesday.
The fund said Greece can now only receive further funding after its arrears are cleared. Greece asked for a last-minute repayment extension on Tuesday, which the fund said it will consider "in due course."
A default by Greece wiIl add to fears over the country’s solvency and fuel doubts over the condition of Greek banks and the collateral they use for European Central Bank loans.
Euro zone finance ministers were to hold discussions later Wednesday but German Chancellor Angela Merkel has ruled out further negotiations until after Sunday's referendum in Greece on whether to accept the terms proposed by lenders for extending the country’s bailout.
Sterling was higher against the euro, with EUR/GBP slipping 0.27% to 0.7082.
Also Wednesday, Markit said that Germany's manufacturing PMI remained unchanged at 51.9 last month, in line with expectations.
France's manufacturing PMI ticked up to 50.7 in June from 50.5 the previous month, confounding expectations for an unchanged reading.