Forex - GBP/USD erases gains despite positive U.K. data

The pound erased gains against the U.S. dollar on Monday, despite the release of positive U.K. economic reports as market sentiment weakened ahead of highly anticipated monetary policy statements by the Federal Reserve and the Bank of England later in the week. 

GBP/USD pulled away from 1.5413, the session high, to hit 1.5355 during European afternoon trade, slipping 0.20%. 

Cable was likely to find support at 1.5290, the low of July 24 and resistance at 1.5440, the high of June 26. 

In a report, the Confederation of British Industry said that its index of realized sales rose more-than-expected in July, advancing to 17 from a reading of 1 the previous month. Analysts had expected the index to rise to 10 last month. 

Separately, the Bank of England said net lending to individuals rose to GBP1.5 billion in June, from GBP1.2 billion the previous month. 
Analysts had expected net lending to individuals to rise to GBP1.4 billion last month. 

But investors remained cautious ahead of the Fed's policy meeting as a string of mixed U.S. economic reports last week fuelled further uncertainty over whether the central bank will soon begin to scale back its bond-buying program. 

Market participants were also eyeing the BoE's policy statement on Thursday for indications on the future of the bank's monetary stimulus program, after official data last week showed that growth in the U.K. economy accelerated in line with expectations in the second quarter. 

Sterling was steady against the euro with EUR/GBP easing up 0.06%, to hit 0.8637. 

Later in the day, the U.S. was to produce industry data on pending home sales.