Forex - GBP/USD holds steady in cautious trade

The pound held steady against the U.S. dollar on Friday, as markets awaited the release of U.S. economic reports later in the day, while fresh concerns over the financial situation in the euro zone weighed on market sentiment. 

GBP/USD hit 1.5186 during European afternoon trade, the session low; the pair subsequently consolidated at 1.5223, easing 0.06%. 

Cable was likely to find support at 1.5110, Thursday's low and resistance at 1.5322, the high of May 16. 

Sentiment broadly weakened after official data showed that the unemployment rate in the euro zone rose to a new record high of 12.2% in April, from 12.1% the previous month, in line with expectations. 

The report came after Destatits said that German retail sales fell 0.4% in April, disappointing expectations for a 0.2% rise, after a 0.1% decline the previous month. 

In the U.K., the Bank of England said that net lending to individuals rose by GBP1.4 billion in April, beating expectations for a GBP0.9 billion increase, after a GBP1.1 billion rise the previous month. 

Meanwhile, investors were eyeing U.S. economic reports later in the day, after downbeat data on Thursday dampened expectations for the Federal Reserve to scale down its stimulus program in the near future. 

The pound was higher against the euro with EUR/GBP retreating 0.34%, to hit 0.8535. 

Later in the day, the U.S. was to release revised data on consumer sentiment from the University of Michigan, as well as data on personal income and expenditure and a report on manufacturing activity in Chicago.

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