Investing.com - The pound remained moderately higher against the U.S. dollar on Friday, but gains were expected to be limited as the release of downbeat U.K. economic reports dampened demand for sterling.
GBP/USD hit 1.6685 during European morning trade, the session high; the pair subsequently consolidated at 1.6675, edging up 0.15%.
Cable was likely to find support at 1.6600, the low of February 13 and resistance at 1.6742, the high of February 18.
Official data showed that U.K. retail sales dropped 1.5% in January, more than the expected 1% decline. Retail sales in December were revised down to a 2.5% increase from a previously estimated 2.6% gain.
On a yearly basis, U.K. retail sales rose 4.3% last month, compared to expectations for a 5% increase, after a 5.3% advance in December.
A separate report showed that public sector net borrowing in the U.K. dropped by £6.4 billion in January, confounding expectations for a £9 billion decline. Public sector net borrowing for December was revised down to a £9 billion increase from a previously estimated £10.4 billion jump.
Meanwhile, the dollar remained supported after the Department of Labor on Thursday said the number of people who filed for unemployment assistance in the U.S. last week fell by 3,000 to 336,000, slightly below expectations for a decline of 4,000.
The Labor Department also said U.S. consumer prices rose 1.6% on a year-over-year basis in January, in line with forecasts. Consumer prices were 0.1% higher from a month earlier, also matching forecasts.
Sterling was higher against the euro, with EUR/GBP slipping 0.16% to 0.8225.
Later in the day, the U.S. was to release private sector data on existing homes sales.