Forex - Pound hits 10-month highs vs. dollar

The pound rose to session highs against the dollar on Wednesday after revised data showed that the rate of growth in the U.K. economy in the third quarter was in line with preliminary estimates.

GBP/USD rose 0.37% to 1.6274, the highest level since January 2, up from 1.6213 on Tuesday.

Cable was likely to find support at 1.6175 and resistance at 1.6338, the high of January 2.

The Office for National Statistics said its second estimate of U.K. third-quarter gross domestic product was unchanged at 0.8% quarter-on-quarter, while the annual rate of growth was also unchanged at 1.5%. 
It was the fastest quarterly rate of growth in over three years.

The ONS said consumer spending rose by 0.8%, its fastest pace since the second quarter of 2010, while industrial output rose 0.6% on the quarter. Construction output was up 1.7%, less that the preliminary estimate.

Trade volumes remained thin ahead of the U.S. Thanksgiving holiday on Thursday.

The release of mixed U.S. economic data did little to shift expectations that the Federal Reserve will start to taper its stimulus program at one of its next few meetings.

Data released on Tuesday showed that U.S. consumer confidence unexpectedly fell to seven month low in November, but a separate report showed that the number of building permits issued in the U.S. rose to the highest level in five years in October.

The euro fell to session lows against sterling, with EUR/GBP sliding 0.13% to 0.8359.

The U.S. was to release reports on durable goods orders and manufacturing activity in the Chicago area later Wednesday, as well as the weekly report on initial jobless claims. The Labor Department report was being released one day early due to the U.S. holiday.