The pound edged lower against the U.S. dollar on Friday, as demand for the greenback strengthened after Thursday’s upbeat U.S. data fuelled further optimism over the strength of the economic recovery. GBP/USD hit 1.5961 during European morning trade, the session low; the pair subsequently consolidated at 1.5976, slipping 0.15%. The pair was likely to find support at 1.5873, the low of October 15 and a one-year low and resistance at 1.6100, the high of October 24. The dollar strengthened on signs the U.S. economic recovery is on track after the Commerce Department reported that U.S. gross domestic product grew at an annual rate of 3.5% in the three months to September, beating forecast for 3%. But consumer spending slowed to 1.8% from 2.5% in the second quarter, and fixed investment spending also declined from the previous quarter, pointing to slackening domestic demand. A separate report showed that the number of Americans filing new claims for jobless benefits rose for a second week last week, but underlying trends still pointed to a recovery in the labor market. Sterling was higher against the euro, with EUR/GBP shedding 0.30% to 0.7858. Also Friday, official data showed that German retail sales dropped 3.2% last month, compared to expectations for a 1.0% fall. August’s figure was revised to a 1.5% increase from a previously estimated 2.5% rise. A separate report showed that French consumer spending slipped 0.8% in September, confounding expectations for a 0.3% fall. August’s figure was revised to a 0.9% gain from a previously estimated 0.7% rise. Later in the day, the U.S. was to release data on personal income and expenditure as well as revised data on consumer sentiment and a report on business activity in the Chicago region.