On Friday, the pound was little changed against the US dollar, being traded near five-year low, after the release of disappointing data on the trade balance of the United Kingdom.
During European morning trade, the GBP/USD pair reached 1.4533, the session low, and subsequently consolidated at 1.4621.
The pair wisas likely to find support at 1.4529, Thursday's and five years low, and resistance at 1.4725, the high of January 5.
UK Office for National Statistics reported that the country's trade deficit narrowed in November to £ 10.64 from £ 11.20 billion in October, the figure being revised up from a £ 11.83 billion deficit. Analysts expected the deficit reduction in November to be £ 10.50 billion.
Meanwhile, market sentiment slightly recovered after the Chinese Securities Commission has suspended the work of systems stabilizing the markets, which operated only from Monday, and the People's Bank of China raised the official exchange rate of the Yuan for the first time in nine days.
Market sentiment came under pressure after the devaluation of the Yuan on Wednesday became the highest since last August, and after Thursday's trading was suspended in China, after about half an hour since opening.
Today, investors are waiting for the publication of a key US employment statistics, to get further guidance on the strength of the labor market of the country.
Sterling rose against the euro, EUR/GBP getting up 0.60% to 0.7434.
As for other currency pairs, the euro fell against the dollar on Friday. EUR/USD is traded at 1.0878, shedding 0.48%. Probably the support is now located at the level of 1.0709, Tuesday's low, and resistance is likely to be at 1.0949, Monday's high.
The Australian dollar rose against the US dollar. At the time of publication, AUD/USD was traded at 0.7060, gaining 0.68%. Meanwhile, the Australian dollar rose against the euro and the Japanese yen. EUR/AUD lost 1.14% and reached the level of 1.5408 and AUD/JPY rose 1.21% to reach 83.50.
The US dollar was down against the Japanese Yen. USD/JPY was traded at 117.63, shedding 0.04%. We believe that the support is now located at around 117.30, Thursday's low, and resistance is likely to make the level of 120.47, Monday's high.