Sterling rose against the dollar away from five-month lows, following a basket of data from Britain and the US, and ahead of a speech by Bank of England Governor Mark Carney at the Society of Professional Economists' annual dinner, in London.
As of 05:30 GMT, GBP/USD rose 0.37% to 1.3397 from the opening of 1.3347, with an intraday high at 1.3422, and a low at 1.3337.
Earlier UK data showed retail sales rose 1.6%, compared to a 1.1% drop in March, and beating expectations of a 0.8% rise.
Otherwise, earlier US data showed unemployment claims rose 9 thousand to 234 thousand from 223 thousand, above expectations of 220 thousand, while continuing claims rose 29 thousand in the week ending May 12 to 1.741 million from 1.712 million, below estimates of 1.746 million.
The House Price Index rose 0.1%, down from 0.6% in February, and missing forecasts of 0.5%, while existing home sales fell 0.9% to an annualized 5.50 million units, compared to a 1.1% rise in March to 5.60 million.
Federal Reserve Bank of Atlanta President Raphael Bostic said in earlier remarks that three rate hikes this year would be appropriate, considering a range of 2.25% to 2.75% as suitable for interest rates.
Bostic said President Trump's decision to cancel a summit with North Korean leader Kim Jong Un in Singapore could create more tensions in markets.