Forex - GBP/USD slips lower, eyes on Bernanke

The pound held steady against the U.S. dollar on Thursday, after the release of upbeat U.S. data, while markets eyed a second day of testimony on monetary policy by Federal Reserve Chairman Ben Bernanke. 

GBP/USD hit 1.5158 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5185, edging down 0.19%. 

Cable was likely to find support at 1.5079, Wednesday's low and resistance at 1.5283, the high of July 4. 

The Federal Reserve Bank of Philadelphia said that its manufacturing index rose 19.8 in the current month from June’s reading of 12.5. Analysts had expected the index to decline to 7.8. 

The data came after the Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 24,000 to 334,000, compared to expectations for a drop of 13,000 to 345,000.

On Wednesday, in the first day of his semi-annual testimony to Congress on Wednesday Bernanke said the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.”

Bernanke said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future. 

The pound found support earlier after the Office for National Statistics said U.K. retail sales rose 0.2% in June, in line with expectations.

Retail sales were 2.2% higher compared to the same month last year, above expectations for a 1.7% gain.

Core retail sales, which exclude automobile sales, rose 0.2% in June, in line with forecasts, after increasing 2.1% in May. 

Sterling was higher against the euro with EUR/GBP slipping 0.12%, to hit 0.8617.