Sterling tumbled against the dollar in American trade to March 19 lows, following a spate of data from Britain and the US, the world's largest economy.
As of 03:43 GMT, GBP/USD fell 0.76% to 1.3972 from the opening of 1.4079, with a two-week low at 1.3966, and a March 28 high at 1.4097.
Earlier UK data showed the services PMI slowed down to 51.7 from 54.5 in February, missing expectations of 53.9.
Otherwise, earlier US data showed unemployment claims in the week ending March 31 rose 24 thousand to 242 thousand from 218K, compared to expectations of 225K, while continuing claims in the week ending March 24 fell 64 thousand to 1.808 million from 1.872, beating expectations of 1.843 million.
The trade deficit widened to $57.6 billion from $56.7 in January, missing expectations of $56.9 billion, while Federal Reserve Bank of Atlanta President Raphael Bostic is due to speak about financial literacy at the University of South Florida, in Sarasota.