Investing.com - The pound softened against a firming dollar on Monday after a widely-watched gauge of U.S. industrial production to beat expectations.
In U.S. trading on Monday, GBP/USD was down 0.37% at 1.5658, up from a session low of 1.5601 and off a high of 1.5747.
Cable was likely to find support at 1.5539, last Monday's low, and resistance at 1.5756, Thursday's high.
The Federal Reserve reported earlier that U.S. industrial production rose by 1.3% in November, beating expectations for a gain of 0.7%.
Industrial production for October was revised up to 0.1% from a previously reported decline of 0.1%.
The report added that the capacity utilization rate, a measure of how full firms are using their resources, rose to 80.1% last month from an upwardly revised 79.3% in October, beating market calls for an unchanged reading.
The data boosted demand for the dollar on expectations that the Federal Reserve will tighten policy next year.
The pound, meanwhile, continued to come under pressure from disappointing U.K. construction data released on Friday.
The U.K. Office for National Statistics reported that construction output declined 2.2% in October, disappointing expectations for a 0.8% rise.
Construction output rose 2.2% in September, whose figure was revised from a previously estimated 1.8% gain.
Elsewhere, sterling was down against the euro, with EUR/GBP up 0.48% at 0.7967, and down against the yen, with GBP/JPY down 1.32% at 184.21.
On Tuesday in the U.K., the Bank of England is to publish its financial stability report. BoE Governor Mark Carney is to hold a press conference about the report.
The U.K. is also to release data on consumer inflation, which accounts for the majority of overall inflation.
The U.S. is to publish reports on building permits and housing starts.