Sterling snaps four-day drop against the euro

The pound snapped a four-day drop against the euro, yesterday after some investors judged the selling of the UK’s currency was overdone.

Sterling also rose against the dollar, overlooking data that showed consumer spending in the Britain rose less than forecast, reining in growth in the economy.

The euro slid against the pound after its relative strength index climbed above 70, a threshold that is deemed as overbought on technical charts.