FXstreet.com (Sydney) - The pound lost ground against the dollar and is trading at 1.6514. The pair is operating within a narrow range around 1.6509/14 and is considered slightly bullish. The pair finds support at 1.6441 and resistance is at 1.6561.

The pound was put under pressure after news coming out of Dubai signalled the return of risk aversion. Overnight, the Dubai government announced that it would seek an extension to repay maturing debts in December. This gave rise to fears that the Dubai government might default on massives debts.