Investing.com - The pound erased gains against the U.S. dollar on Friday, pulling away from three-week highs after the release of upbeat U.S. nonfarm payrolls data as well as a disappointing U.S. trade balance report.
GBP/USD pulled away from 1.6786, the pair's highest since February 17, to hit 1.6729 during U.S. morning trade, down 0.06%.
Cable was likely to find support at 1.6658, the low of March 5 and resistance at 1.6823, the high of February 17.
The U.S. Bureau of Labor Statistics said the economy added 175,000 jobs in February, compared to expectations for a 149,000 increase. January's figure was revised up to a 129,000 gain from a previously estimated 113,000 rise.
The U.S. private sector added 162,000 jobs last month, exceeding expectations for a 154,000 rise. January's figure was revised up to a 145,000 increase from a previously estimated 142,000 gain.
The report also showed that the U.S. unemployment rate ticked up to 6.7% in February, from 6.6% the previous month. Analysts had expected the unemployment rate to remain unchanged last month.
Meanwhile, data also showed that the U.S. trade deficit expanded to $39.1 billion in January, from $38.98 billion in December, whose figure was revised from a previously estimated deficit of $38.7 billion.
Analysts had expected the trade deficit to expand to $39.00 billion in January.
In the U.K., official data showed that consumer inflation expectations for the next 12 months slipped to 2.8% in the fourth quarter, from 3.6% in the previous quarter.
Sterling was lower against the euro, with EUR/GBP adding 0.10% to 0.8289.
Also Friday, official data showed that German industrial production rose 0.8% in January, more than the expected 0.7% increase. Industrial production in December was revised up to a 0.1% gain from a previously estimated 0.6% fall.