Sterling backs off one-month high

Sterling fell today away from a one-month high hit yesterday, amid growing pressure on the pound after mortgage approvals fell in Britain, triggering profit-taking. 

GBP/USD last traded at 1.2493, down from the opening of 1.2518, with an intraday high at 1.2518, and a low at 1.2470. 

Mortgage approvals in Britain fell to 42.6 thousand in February from 44.1K in the previous reading, revised lower from 44.7K, while analysts expected 44.9K.

The data enforced a profit-taking trend on the pound after it hit a four-week high against the greenback, and reflected weakness in the housing sector after prices rose due to a tumble in interest rates to record lows. 

On the other hand, the dollar fell today against a basket of currencies after erasing earlier gains following mixed U.S. data, while markets await the House's vote on a healthcare bill, weakening the greenback. 

The pound drew recent support from higher inflation rates, which could prompt Bank of England to increase interest rates soon, specially after one member already voted to increase rates in the last meeting.