Sterling rose in American trade away from January 12 lows for the third straight session against the greenback, following earlier data from Britain and the US, the world's largest economy.
As of 04:38 GMT, GBP/USD rose 0.43% to 1.3861 from the opening of 1.3778, with a session-high at 1.3877, and a low at 1.3767.
Earlier UK data showed the services PMI widened to 54.5 from 53 in January, beating analysts' expectations of 53.3.
Otherwise, the US ISM Services PMI slowed down to 59.5 in February from 59.9 in January, still beating expectations of 58.9.
Productivity and business activities gauges in the same survey rose to 62.8 from 59.8, while new orders rose to 64.8 from 62.7, as employment slowed down to 55 from 61.7.
Federal Reserve Chair Jerome Powell testified on the Semiannual Monetary Policy Report before Congress, in Washington DC, last week, where he painted a mostly positive picture of the economy and bolstered expectations of four rate hikes this year, while markets await Federal Reserve Governor Randal Quarles' speech about foreign bank regulation at the Institute of International Bankers Annual Washington Conference, later today.