The pound posted its sixth straight weekly loss against the dollar on Friday, despite data showing that the U.K. economy grew at the fastest annual rate since final quarter of 2007 in the year to June.
GBP/USD ended Friday’s session at 1.6691, hovering just above the four-month trough of 1.6656 set on Thursday. For the week, the pair was down 0.51%.
Cable is likely to find support at around 1.6625 and resistance at 1.6740.
The pound found some support after revised data on Friday showed that the U.K. economy grew at an annual rate of 3.2% in the year to June. Economists had expected that annual rate of growth to remain unchanged from the preliminary estimate of 3.1%.
Second quarter growth remained unchanged from the initial estimate of 0.8%.
Safe haven demand for the greenback continued to be underpinned on Friday as heightened geopolitical tensions soured market sentiment.
Tensions over the crisis in Ukraine escalated following reports that Ukraine's military attacked and destroyed a number of armored vehicles that entered the country from Russia.
Sterling had weakened broadly earlier in the week after the Bank of England halved its forecast for wage growth on Wednesday and said the rate of pay growth would be critical in determining the future timing of rate hikes.
BoE Governor Mark Carey also reiterated that when rates do start to rise they will do so a “small, slow” manner.
Sterling was also lower against the euro, with EUR/GBP advancing 0.24% to 0.8028 late Friday, not far from Thursday’s seven week highs of 0.8035.
The single currency drifted higher amid expectations for fresh stimulus from the European Central Bank following data on Thursday showing that the euro zone economy stagnated in the second quarter.
In the week ahead, investors will be looking ahead to Wednesday’s minutes from both the Federal Reserve and the Bank of England. Markets will also be awaiting U.K. reports on consumer prices and retail sales.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 18
The U.S. is to produce private sector data on the housing market.
Tuesday, August 19
The U.K. is to produce data on consumer inflation, which accounts for the majority of overall inflation.
The U.S. is to release reports on building permits, housing starts and consumer inflation.
Wednesday, August 20
The Bank of England is to publish the minutes of its latest policy meeting.
Later Wednesday, the Federal Reserve is to publish the minutes of its latest policy meeting.
Thursday, August 21
The U.K. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
The U.S. is to produce data on unemployment claims, manufacturing activity and existing home sales.
The first day of the annual economic symposium is due to take place in Jackson Hole, Wyoming.
Friday, August 22
Fed Chair Janet Yellen is to speak at the second day of the annual economic symposium in Jackson Hole, Wyoming.