Investing.com - The pound was lower against the U.S. dollar on Tuesday, after data showed that U.K. consumer price inflation was in line with expectations last month, while the greenback remained supported ahead of the Federal Reserve's policy statement.
GBP/USD hit 1.6168 during European morning trade, the pair's lowest since September 10; the pair subsequently consolidated at 1.6175, sliding 0.36%.
Cable was likely to find support at 1.6050, the low of September 10 and a ten-month low and resistance at 1.6278, Monday's high.
Official data showed that U.K. consumer price inflation rose 0.4% in August, in line with market expectations, after a 0.3% fall the previous month.
On a year-on-year basis, U.K. CPI slowed to 1.5% last month from 1.6% in July.
U.K. core CPI, which excludes food, energy, alcohol, and tobacco, rose 1.9% last month, up from 1.8% in July. Analysts had expected core prices to rise 1.8% in August.
The report also showed that the house prices index climbed 11.7% in July, compared to forecasts for a reading of 10.6% and following a 10.2% increase in June.
Demand for the dollar remained supported by expectations for an early hike in U.S. interest rates.
The Fed was expected to cut its asset purchase program by another $10 billion at its upcoming policy meeting on Wednesday, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.
Sterling was also lower against the euro, with EUR/GBP gaining 0.40% to 0.8003.