On Monday, the pound was little changed against the US dollar, being traded at around eight-month low, as sentiment on the US currency gained support from the political decision of the Federal Reserve System.
Trading volumes are expected to remain limited in the run-up to Christmas.
During European morning trade, GBP/USD reached 1.4892, the session low, and subsequently consolidated at 1.4899.
The pair is likely to find support at 1.4861, the low of December 17 and eight months, and resistance at 1.5003, the high of the same day.
The dollar jumped against the pound last week after the Federal Reserve raised interest rates by a quarter percentage point to 0.25% -0.5%, as many expected.
Commenting on the decision, the head of the US central bank, Janet Yellen, said that further rate increase will be gradual and dependent on economic indicators.
Meanwhile, markets remain cautious after on Friday WTI crude oil fell to $ 34.29, the lowest level since 2004, amid renewed concerns about the global reserves of oversaturation.
Sterling grew slightly against the euro; EUR/GBP has weakened 0.09% to 0.7288.
Also, on Monday the euro rose against the US dollar, but growth is expected to remain limited, as the Federal Reserve decision continues to support the demand for dollar.
During the morning US trading session, EUR/USD reached 1.0908, its highest level since December 17; the pair subsequently consolidated at 1.0891, rising 0.25%.
The pair is likely to receive support at 1.0802, Friday's low, and resistance at 1.1007, the high of December 16.
The euro was down against the Japanese Yen on Monday. EUR/JPY was traded at 131.70, shedding 0.07%. The support is now located at around 130.97, Friday's low, and resistance is likely to be at the level of 133.92 - Friday's high.
The US dollar rose against the yen. USD/JPY was traded at 121.50, gaining 0.28%. The support is now located at the level of 121.04, the low of today's trading, and the resistance is likely to make the level of 123.60 - Friday's high.