The pound rose against the dollar on Tuesday, to trade near 27-month highs after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years November.
GBP/USD was up 0.34% to 1.6411 during European morning trade, holding just below Monday’s high of 1.6441, the highest level since August 2011.
Cable was likely to find support at 1.6341, Monday’s low and near-term resistance at 1.6441.
The U.K. construction purchasing managers'' index rose to 62.6 in November, the highest level since August 2007, from 59.4 in October.
Analysts had expected the index to tick down to 59.0.
The report said overall activity rose for the seventh month in a row, with "sharp increases” in new orders and employment, while growth in house-building in November was the fastest in 10 years.
“Looking ahead, there are a number of positive signs that improvements in activity levels will be maintained, as job creation picked up again in November and confidence about the business outlook reached its highest level since September 2009,” senior economist at survey compiler Markit Tim Moore said.
The report came a day after data showed that the manufacturing sector in the U.K. expanded at the fastest rate in 33 months in November. The upbeat fuelled expectations that the Bank of England may tighten monetary policy ahead of other central banks.
Elsewhere, the euro was trading close to 11-month lows against sterling, with EUR/GBP slipping 0.13% to 0.8267.
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