Sterling rose on Thursday to a four-week high as the dollar traded near a seven-week low against a basket of currencies, and following upbeat retail sales data from Britain in February.
GBP/USD last traded at 1.2521, up from the opening of 1.2471, with an intraday high at 1.2532, and a low at 1.2464.
Britain's retail sales rose 1.3% in February after falling 0.3% in the precious reading, while on a yearly basis, sales rose 4.1%, compared to 2.1% in January.
The current improvement in retail sales indicates higher spending rates from consumers despite rising inflation and slowing wages, pointing to consumers' confidence in the economy despite starting the process of exiting the European Union.
The dollar kept trading near a seven-week low against a basket of currencies following disappointing U.S. unemployment claims data, while markets await the Congress to vote on the new healthcare law, in turn underpinning the pound.