Investing.com - The pound rose against its U.S. counterpart on Monday, but gains were expected to remain limited as expectations for a U.S. rate hike in the coming months continued to lend broad support to the greenback.
GBP/USD hit 1.5232 during European morning trade, the session high; the pair subsequently consolidated at 1.5214, adding 0.23%.
Cable was likely to find support at 1.5132, Friday's low and a four-month low and resistance at 1.5261, Friday's high.
The dollar found support after Federal Reserve Chair Janet Yellen said last Thursday that the U.S. central bank remains on track to raise interest rates this year.
The comments reassured investors that monetary policy has not altered significantly following the Fed’s decision to hold off hiking rates earlier this month.
The greenback received an additional boost after data on Friday showed that the U.S. economy grew at a faster rate than previously estimated in the three months to June.
The Commerce Department said gross domestic product expanded at an annual rate of 3.9% in the second quarter, up from an initial estimate of 3.7%.
Consumer spending, which comprises more than two-thirds of U.S. economic activity was revised up to 3.6% from the 3.1% reported in August.
The pound remained supported after Bank of England official Jon Cunliffe said last week that the U.K. economy was performing well compared to its international counterparts, fuelling further expectations that the BoE its on its way to raise interest rates as well.
Strerling was also higher against the euro, with EUR/GBP sliding 0.31% to 0.7353.