GBP/USD hovers near 6-month peak after U.K. GDP data

The pound was hovering near fresh six-month highs against the U.S. dollar on Friday, after the release of overall positive U.K. economic growth data and as sentiment on the greenback also remained vulnerable ahead of key U.S. data due later in the day.

GBP/USD hit 1.2944 during European morning trade, the pair’s highest since October; the pair subsequently consolidated at 1.2929, up 0.20%.

Cable was likely to find support at 1.2834, Thursday’s low and resistance at 1.2948.

The U.K. Office for National Statistics said gross domestic product expanded by 0.3% in the three months ended March 31, below forecasts for growth of 0.4%.

The U.K. economy grew by 0.7% in the preceding quarter and has now grown for 17 consecutive quarters.

Year-over-year, U.K. economic growth expanded 2.1% in the first quarter, also below forecasts for an expansion of 2.2%.

Meanwhile, sentiment on the greenback was fragile after U.S. President Donald Trump said he will either renegotiate or terminate a "horrible" trade deal with South Korea.

The comments came shortly after Trump said that a "major, major" conflict with North Korea is possible but he is looking for a diplomatic answer.

Market participants were also looking ahead to the release of reports on U.S. first-quarter growth and consumer sentiment, due later Friday.

Sterling was steady against the euro, with EUR/GBP at 0.8427.