Investing.com - The pound dropped to nearly five-month lows against the U.S. dollar on Tuesday, despite data showing that U.K. construction sector activity expanded at the fastest rate in seven months in August.
GBP/USD hit 1.6546 during European morning trade, the pair's lowest since August 27; the pair subsequently consolidated at 1.6548, sliding 0.36%.
Cable was likely to find support at 1.6525, the low of August 25 and a five-month low and resistance at 1.6615, the session high.
The pound came under pressure after a poll showed the Yes to Independence camp gaining ground in the Scottish referendum battle.
According to The Guardian, the YouGov poll released on Monday night put the lead for the No campaign at six points, down from 14 points in the middle of August and 22 points early last month.
Sterling shrugged off data showing that activity in the U.K. construction sector expanded at the fastest rate since January last month.
The Markit/Chartered Institute of Purchasing & Supply U.K. construction purchasing managers' index rose to 64.0 last month from 62.4 in July. Economists had expected the index to tick down to 61.4.
It was the fastest increase in output since January and was the second-strongest rate of output expansion since the pre-recession peak seen in August 2007.
Residential construction posted the fastest rise in activity, the report said. Civil engineering activity increased at the strongest pace since March, while growth in commercial construction remained close to the fastest rate since the summer of 2007.
Meanwhile, investors continued to monitor developments in Ukraine after European Union leaders threatened over the weekend to impose a new round of sanctions on Russia if Moscow does not scale back its involvement in the conflict in eastern Ukraine.
Sterling was also lower against the euro, with EUR/GBP rising 0.28% to 0.7927.
In the euro zone, official data showed that the number of unemployed people in Spain rose by 8,100 in August, far below expectations for an increase of 26,000. In July, the number of unemployed people had dropped by 29,800.
Sentiment on the single currency remained fragile amid mounting expectations that the European Central Bank will implement fresh measures as a way to shore up long term inflation expectations after data last week showed that the annual rate of euro zone inflation slowed to a five year low of 0.3% last month.