Sterling steadied on Wednesday after Bank of England policy minutes were slightly less dovish than expected, forcing some speculative short positions to be trimmed, but the pound was clouded by uncertainty over the UK and eurozone economies.
Monetary Policy Committee members voted 7-2 to keep rates at 0.5 percent, as they did in June. BoE chief economist Spencer Dale and external member Martin Weale voted again to raise rates.
The minutes noted that Adam Posen discussed the need for further asset purchases, but no other member joined him, in contrast to last month.
Investors had been short of sterling before the minutes were released in anticipation of discussion of quantitative easing, but bought the pound back on evidence of declining support for further asset purchasing.
Sterling edged up from around $1.6090 to $1.6110 in the wake of the minutes, and last traded with losses of 0.1 percent on the day at $1.6123.
Offers were cited around this month's high of $1.6195, with resistance then highlighted at $1.6208, the 55-day moving average, together with a three-month downtrend which comes in around $1.6218.
Support was the 200-day moving average at $1.6054, with bids reported on approach to $1.6000.
The euro gained around 0.2 percent on the day to trade at 87.94 pence, easing back from around 88.19 pence before the BoE minutes.
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