On Thursday, the pair fell amid cautions in markets that the European summit on October 23 may be delayed which damped demand on high-yielding currencies.
The jittery situation remained in markets amid rising speculations there will be a delay in the awaited European council meeting on Saturday and talks about a split among European leaders.
The pound recovered some of its losses after the release of upbeat retail sales figures which showed 0.6% advance in the reading with auto fuel, the highest level in five months, compared with the revised 0.4% drop in August, yet the rebound was not strong enough to recover all the losses as the main concern remained with news from the euro area.
On the other hand, data from the U.S. showed that initial claims fell to 403,000 in the week ended October 15 from the revised 409,000 a week before, higher than forecasts of 400,000, while existing home sales slipped 3.0% in September from the revised 8.4% rise, adding more negativity to the sentiment.
The week ends with the release of public finance excluding interventions at 08:30 GMT, while the U.S. has no releases. Thus, the pair is expected to follow the general sentiment in market, where the main focus remains on the latest developments from the euro area.
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