The pound edged higher against the U.S. dollar on Friday, as concerns over the economic consequences of the U.S. government shutdown continued to weigh on demand for the greenback.
GBP/USD hit 1.6194 during European morning trade, the pair's highest since October 3; the pair subsequently consolidated at 1.6180, adding 0.11%.
Cable was likely to find support at 1.6026, the low of October 7 and resistance at 1.6241, the high of October 3.
The dollar remained under pressure amid fears over the impact of the government shutdown on the already fragile economic recovery, which could prompt the Federal Reserve to delay plans for scaling back its stimulus program until at least the start of next year.
The possibility of another debt crisis also loomed, as the temporary debt ceiling agreement reached early Thursday does not resolve the underlying budgetary issues dividing Republicans and Democrats.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
Sterling was fractionally higher against the euro with EUR/GBP edging down 0.08%, to hit 0.8453.
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