Investing.com - The pound erased gains against the U.S. dollar on Friday, pulling away from two-and-a-half week highs as market attention shifted away from Thursday's referendum on Scottish independence.
GBP/USD pulled away from 1.6525, the pair's highest since September 2, to hit 1.6354 during European afternoon trade, shedding 0.26%.
Cable was likely to find support at 1.6244, Thursday's low and resistance at 1.6615, the high of September 2.
The pound strengthened earlier, after Scottish voters rejected independence, averting a break-up of the United Kingdom and prolonged uncertainty.
A record turnout of voters delivered a clear victory for the No campaign on Thursday, with 55% of Scottish voters rejecting independence and 45% backing it.
Uncertainty over what currency an independent Scotland would use, as well as concerns over how much of the U.K. national debt it would take on had sparked a broad based selloff in sterling last week.
Meanwhile, the dollar remained supported after the Federal Reserve on Wednesday cut its monthly bond-buying program by another $10 billion following its two-day policy meeting on Wednesday, keeping the program on track to finish next month.
Markets interpreted the Fed's statement as hawkish, despite policymakers maintaining language suggesting that rate hikes would not happen for a "considerable time."
Investors shrugged off data on Thursday showing that the Philadelphia Fed's manufacturing index deteriorated to a three-month low this month, as well as a report showing that U.S. building permits dropped by 5.6% last month and that housing starts tumbled by 14.4%.
Sterling eased away from two-year highs against the euro, with EUR/GBP last down 0.23% at 0.7864.