GBP/USD trims gains slightly on U.S. data

The pound held firm against the dollar on Tuesday, giving back some its gains against the greenback on solid U.S. housing data.

In U.S. trading on Tuesday, GBP/USD was trading at 1.6831, up 0.23%, up from a session low of 1.6786 and off a high of 1.6840.

Cable was likely to find support at 1.6784, Monday's low, and resistance at 1.6842, Thursday's high.

In the U.S. earlier, industry data revealed that existing home sales fell by 0.2% in March to 4.59 million units, beating expectations for 4.55 million units.

A separate report showed that the Richmond Fed manufacturing index jumped to 7 this month, from a reading of -7 in March, beating expectations for a reading of 0.

The data, while positive, took back only some of the pound's gains.

The U.K. currency continued to applaud data last week showing that the U.K. unemployment rate fell to a five-year low in the three months to February, which fueled expectations for a rate hike by the Bank of England in the first quarter of next year.

Elsewhere, sterling was up against the euro, with EUR/GBP down 0.18% at 0.8200, and up against the yen, with GBP/JPY up 0.21% at 172.70.

On Wednesday, the U.K. is to release data on public-sector borrowing, while the BoE is to publish the minutes of its April meeting. The nation is also to publish private-sector data on industrial order expectations.

The U.S. is to publish reports on new home sales and manufacturing activity.