Investing.com - The pound trimmed gains against the U.S. dollar on Friday, pulling back from a two-week high after data showed that the U.K. trade deficit narrowed less-than-expected in August, dampening optimism over the strength of the British economy.
GBP/USD pulled back from 1.5383, the pair's highest since September 22, to hit 1.5346, still up just 0.01%.
Cable was likely to find support at 1.5257, Thursday's low and resistance at 1.5456, the high of September 15.
The Office for National Statistics reported on Friday that the U.K. trade deficit narrowed to £11.15 billion in August from £12.20 billion in July, whose figure was revised from a previously estimated deficit of 11.08 billion.
Analysts had expected the trade deficit to narrow to £10.00 billion in August.
The report came a day after the Bank of England said it was holding the benchmark interest rate at 0.50%, in a widely expected move. The rate has been held at that level since March 2009.
The central bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.
According to the minutes, the path interest rates will follow over the next few years will depend on economic circumstances.
Meanwhile, demand for the greenback remained under pressure after the Federal Reserve gave little indication on when it plans to raise interest rates.
The Fed's September meeting minutes released on Thursday indicated that policymakers were still watching domestic inflation and the impact of slower global growth when considering when to raise interest rates.
Sterling was lower against the euro, with EUR/GBP gaining 0.39% to 0.7374.