The pound was almost unchanged against the U.S. dollar in light trade on Friday, trading close to four-and-a-half month lows as markets awaited a speech by Federal Reserve Chair Janet Yellen in Jackson Hole later in the day.

GBP/USD was at 1.6589 during European morning trade, not far from Thursday's four-and-a-half month low of 1.6564.

Cable was likely to find support at 1.6566, the low of April 7 and resistance at 1.6679, the high of August 20.

A string of upbeat U.S. economic reports and the Fed's latest meeting minutes sent the dollar broadly higher this week.

On Wednesday, the minutes of the Fed’s July meeting showed that some officials believe the strengthening recovery and ongoing improvement in the labor market supports a move towards tightening monetary policy.

Market participants were eyeing Ms. Yellen's comments later in the day for further indications on the central bank's next policy moves.

Meanwhile, the pound remained under pressure after official data on Thursday showed that U.K. retail sales rose 0.1% in July, disappointing expectations for an increase of 0.4%.

Sterling was little changed against the euro, with EUR/GBP dipping 0.01% to 0.8009.

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