FXstreet.com (Sydney) - The pound lost recent gains on the dollar and is trading at 1.6561. The pound had earlier opened at 1.6602 and had been as high as 1.6618 before dropping. The pair has traded in a narrow range after falling and finds support at 1.6529 and resistance is at 1.6628. The pair is considered slightly bearish.

The pound could not maintain gains against the dollar after housing data was released in the US. The sale of existing houses increased in October for the second month running and had jumped to its highest level since 2007. This resulted in a rally in the stock market with the Dow rising by over 1%.

The market awaits further economic data from the UK this week including inflation reports and the governor of the BoE Mervyn King speaks tomorrow.