On Tuesday, the pound lost some growth against the US dollar after disappointing UK manufacturing data, though news of the successful stress test of British banks support the demand for the British currency.
During European morning trade, GBP/USD retreated from 1.5126, the peak from November 26, and reached 1.5085, still up 0.18% today.
The pair is likely to find support at 1.4990, Monday and seven-month low, and resistance at 1.5197, the high of November 23.
On Tuesday, Markit research group said that its UK manufacturing PMI fell to 52.7 last month, from a revised 55.2 in October. Analysts had forecast a decline to 53.6 in November.
However, the pound was supported after the Bank of England Governor, Mark Carney, said that there is not planned a new wave of capital regulation for British banks.
Earlier on Tuesday, the Bank of England announced that it will require banks to hold 10 billion pounds as additional capital, as the credit cycle turns to the normal phase, however, refraining from immediate action.
The Bank of England also said that all the seven major UK banks have passed stress tests, while Standard Chartered (L: STAN) and Royal Bank of Scotland (L: RBS) slightly disappointed some estimates.
The public stress test from the British Central Bank was the second of its kind, as it aims to increase investor confidence in the UK financial sector.
Meanwhile, speculation that the Federal Reserve is preparing to raise interest rates at its December meeting continues to support the demand for the US currency.
Sterling is steady against the euro; EUR/GBP pair is at 0.7023.
Markit said that its index of business activity in the German manufacturing sector rose to 52.9 in November from 52.6 in the previous month.
Moreover, German data showed that the number of unemployed in November fell 13 000 compared to expectations of a decline of 5000.
Sentiment on the euro remained weakened after the European Central Bank has signaled in recent weeks that it is prepared to extend the easing measures in order to raise the level of inflation and to contribute to the strengthening of the Eurozone economy.