Investing.com - The pound was almost unchanged against the U.S. dollar on Friday, hovering close to a five-year low after the release of downbeat U.K. trade balance data.
GBP/USD hit 1.4533 during European morning trade, the session low; the pair subsequently consolidated at 1.4621.
Cable was likely to find support at 1.4529, Thursday’s low and a five-year low and resistance at 1.4725, the high of January 5.
The U.K. Office for National Statistics said the trade deficit narrowed to £10.64 billion in November from £11.20 billion in October, whose figure was revised from a previously estimated deficit of £11.83 billion.
Analysts had expected the trade deficit to narrow to £10.50 billion in November.
Meanwhile, market sentiment slightly recovered after the China Securities Regulatory Commission suspended the market circuit breaker introduced only on Monday and after the People's Bank of China set a higher yuan guidance rate for the first time in nine days.
Sentiment was hit after Wednesday’s largest daily drop in the yuan midpoint rate since last August and after trading on Chinese markets was suspended on Thursday after only one hour of trading.
Elsewhere, investors were now eyeing the release of key U.S. employment data due later in the day for further indications on the strength of the country’s job market.
Sterling was higher against the euro, with EUR/GBP declining 0.60% to 0.7434.