Forex - GBP/USD slips on strengthening U.S. jobs, factory data

The pound moved lower against the dollar on Thursday on news that U.S. jobless claims came in much lower than expected last week, while separate data revealed that factory activity is on the rise in the world's largest economy.

Solid indicators in the U.S. often strengthen the greenback by fueling expectations that the Federal Reserve is moving closer to tapering and eventually ending monetary stimulus programs such as monthly asset purchases that weaken the dollar to spur recovery.

In U.S. trading on Thursday, GBP/USD was trading at 1.5134, down 0.49%, up from a session low of 1.5110 and off from a high of 1.5254.

Cable was likely to find support at 1.5028, the low from July 15, and resistance at 1.5413, Monday's high.

In the U.S. earlier, the Institute of Supply Management said its widely-watched purchasing managers index rose to 55.4 in July from 50.9 in June, expanding at its fastest rate since April of 2011 and well above market forecasts for a 52.0 reading. 

The numbers strengthened the greenback by keeping expectations alive that the Federal Reserve remains on track to winding down stimulus measures such as its USD85 billion-a-month bond-buying program, which weakens the greenback to speed up recovery.

Better-than-expected data out of the labor market also fueled ongoing sentiments that special monetary stimulus programs will begin to wind down possibly this year and end in 2014.

The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 26 fell by 19,000 to 326,000. 

Analysts were expecting jobless claims to come in at 345,000. 

Meanwhile in the U.K., the Bank of England earlier left interest rates unchanged at a record low 0.5% and left the size of its asset-purchasing program unchanged at GBP375 billion.

The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP down 0.13% at 0.8734 and GBP/JPY up 1.07% at 152.87.