On Wednesday, the pound was little changed against the US dollar, being traded near eight-month low, while trading volumes are weakened on the eve of New Year holidays.
Trading volumes are expected to remain low in the last days of this year, as many traders close positions on the eve of the holiday period, reducing liquidity in the market and supporting volatility.
During European morning trade, GBP/USD reached 1.4845 – the session low and subsequently consolidated at 1.4820.
The pair is likely to find support at 1.4786, Tuesday and eight months low, and resistance at 1.4914, Tuesday's high.
The dollar strengthened after the Conference Board on Tuesday said that the consumer confidence index rose to 96.5 in December from 92.6 in November, the figure being revised from a preliminary estimate of 90.4. Analysts had expected the index to rise to 93.8 this month.
According to the US Bureau of Economic Analysis, the negative balance of foreign trade increased last month to $ 60.50 billion from $ 58.41 billion in October. Analysts had expected a larger increase in the trade deficit in November - to $ 60.90 billion.
The data were published after mixed economic data, which appeared last week, did not clarify the situation with the pace of US central bank rate hike in the next year.
The focus of the market gradually shifted from the first rate hike in the United States since 2006, to the pace of further growth of interest on loans.
According to the Nationwide Building Society, house prices in the UK rose in December by 0.8%, exceeding expectations of a 0.5% rise, after rising 0.1% the previous month.
Sterling fell against the euro: EUR/GBP added 0.12% to 0.7381.
Today, the dollar rose against other major currencies. USD/JPY is unchanged at 120.48, EUR/USD is also almost unchanged at 1.0924, USD/CAD pair rose 0.25% to 1.3876, AUD/USD is stable at 0.7296, NZD/USD weakened 0.22% to 0.6853, and USD/CHF has lost 0.19% to 0.9911.
The USD index, which tracks the US currency against a basket of six major rivals, rose 0.11% to 98.34.