Investing.com - The pound edged higher against the U.S. dollar on Wednesday, after data showed that the U.K. economy grew in line with expectations in the second quarter, adding to optimism over the health of the British economy.
GBP/USD hit 1.5180 during European morning trade, the session high; the pair subsequently consolidated at 1.5172, adding 0.13%.
Cable was likely to find support at 1.5125, Tuesday's low and a four-month low and resistance at 1.5242, Monday's high.
The U.K. Office for National Statistics reported on Wednesday that gross domestic product expanded at a rate of 0.7% in the three months to June, meeting forecasts and unchanged from a preliminary estimate. The U.K. economy grew by 0.4% in the previous quarter.
Year-over-year, U.K. economic growth expanded by 2.4% in the second quarter, down from an initial estimate of 2.6%. The U.K. economy grew at an annualized rate of 2.9% in the first quarter.
A separate report showed that the U.K. current account recorded a deficit of £16.8 billion in the second quarter, narrowing from a deficit of £24.0 billion in the first quarter, whose figure was revised from a deficit of £26.5 billion.
Economists had expected the current account deficit to narrow to £22.3 billion in the last quarter.
Meanwhile, investors awaited comments by Federal Reserve Chair Janet Yellen due later in the day after mixed messages from several U.S. central bank policymakers last week led to uncertainty over whether the Fed will raise short term interest rates this year.
New York Fed President William Dudley and San Francisco Fed head John Williams indicated support for a rate hike in 2015 in separate speeches on Monday, but Chicago Fed President Charles Evans said rates should remain on hold until mid-2016.
Sterling was also higher against the euro, with EUR/GBP retreating 0.45% to 0.7394.