Forex - GBP/USD remains moderately lower in subdued trade

The pound remained moderately lower against the U.S. dollar in subdued trade on Monday, as investors remained cautious amid mounting expectations for the Federal Reserve to soon begin tapering its stimulus program. 

GBP/USD hit 1.5966 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5984, slipping 0.18%. 

Cable was likely to find support at 1.5903, the low of November 4 and resistance at 1.6105, the high of November 8. 

The dollar remained supported after official data on Friday showed that the U.S. economy added 204,000 jobs in October, significantly higher than the 125,000 expected by economists. 

The report came on the heels of data showing that the U.S. economy expanded by a larger-than-forecast 2.8% in the third quarter.

The upbeat data indicated that the U.S. economy shrugged off the impact of the government shutdown and raised the possibility that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as its next monthly meeting in December. 

Sterling was also lower against the euro with EUR/GBP gaining 0.49%, to hit 0.8387. 

Sentiment on the euro remained vulnerable after the European Central Bank unexpectedly cut bank rates to 0.25% from 0.5% on Thursday and indicated that further rate cuts are still possible.