Sterling fell to an 11-day low against the dollar on Tuesday, with a surprise fall in UK house prices and a sluggish retail sales report adding to a global drop in demand for perceived riskier currencies and assets. Traders said investors were booking profits on recent gains in stocks and commodities while mounting uncertainty over Greece's progress in completing a debt swap deal supported the pound against the euro.
A survey by mortgage lender Halifax showed house prices dipped 0.5 percent in February, compared to forecasts of a 0.3 percent rise, added to the broader weakness. Some traders expected sterling to ease towards $1.57 in the coming days if risk appetite continues to sour.
"Cable's attempts to rise above the $1.60 level have failed and we could it see drift lower," said Michael Derks, chief strategist at FXPro. "There is profit-taking in the riskier assets which have had a good run in the past two months and that is weighing on cable." Sterling, which often moves in tandem with stocks, was down 0.6 percent at $1.5757, having fallen to past stop-loss orders at $1.5750 to $1.5748 - its weakest since February 24. The losses were, however, much less than those of the higher-yielding Australian and New Zealand dollars.
Traders cited support near its February 24 low of $1.5721 with more near its 100-day moving average of $1.5711. Offers are seen between $1.5880 and $1.5900, coinciding with the 200-day moving average, a closely watched technical indicator, around $1.5890, traders said.
The euro was steady against the pound at 83.28 pence, not far from a 2-1/2-week low of 83.13 pence hit on Friday, and well below a high of 85.06 pence hit on February 24. The single currency has chart support around 83.00 pence from a trendline drawn from this year's low, but a break below there would target the January low of 82.22 pence.