Sterling fell on Monday to a 2-1/2 month low as demand fell on the pound while the dollar steadies, adding to the policy divergence between the Bank of England and the Federal Reserve.
GBP/USD last traded at 1.2156, down from the opening of 1.2259, with an intraday high at 1.2274, and a low at 1.2127.
Sterling's current drop comes amid a widening policy gap between the Fed and the BoE, which forces the royal currency down.
Sterling's tumble comes despite a lack of data from Britain, while the dollar steadies against main currencies, which reflects the selling pressures on the pound.
Dollar has steadied against main rivals after returning higher on Friday following the U.S. payrolls report, which showed the labor sector has tightened further, underpinning the greenback and hurting the pound.