FXstreet.com (Sydney) - The pound lost ground to the USD after recent gains dropping to 1.6741. The pair traded as low as 1.6600 before recovering slightly. It has now stabilised trading in a narrow range around 1.6740. The pair currently finds resistance 1.6840 with support at 1.6250. Current sideways trend is likely to continue and the pair remains slightly bearish.
The dollar's gains came as UK trade deficit grew more than expected in September led by a 30% increase in car imports. The trade gap was £7.2bn in September, over £1bn estimated by analysts. Britain's cash for bangers scheme was to blame for the jump. In the scheme owners of older cars were given £2000.00 towards a new vehicle.