GBP/USD trims losses after U.K. CPI report

The pound trimmed losses against the U.S. dollar on Tuesday, after data showed that U.K. consumer price inflation rose in line with expectations last month, although concerns over the crisis in Ukraine continued to weigh on sentiment.

GBP/USD pulled away from 1.6662, the pair's lowest since April 8, to hit 1.6715 during European morning trade, still down 0.08%.

Cable was likely to find support at 1.6607, the low of April 8 and resistance at 1.6788, the high of April 11.

Official data showed that U.K. consumer price inflation rose 0.2% in March, in line with expectations, after a 0.5% increase the previous month.

On a yearly basis, U.K. CPI rose 1.6% last month, in line with market expectations, after a 1.7% gain in February.

But investors remained cautious as the U.S. and the European Union said that they are considering further sanctions against Moscow after pro-Russian separatists on Monday ignored an ultimatum to leave occupied government buildings in eastern Ukraine.

Market participants were eyeing a meeting scheduled on Thursday in Geneva between the U.S., the EU, Ukraine and Russia, with hopes it will bring a political resolution to escalating tensions in Eastern Europe.

Demand for the greenback remained supported after official data on Monday showed that U.S. retail sales rose 1.1% in March, exceeding expectations for a 0.8% gain, while core retail sales, which exclude automobiles, rose 0.7% last month, more than the expected 0.5% increase.

Sterling was fractionally higher against the euro, with EUR/GBP down 0.08% to 0.8255.

Later in the day, the U.S. was to produce data on consumer inflation. In addition, Federal Reserve Chair Janet Yellen was set to speak.