Sterling fell off early August highs against the greenback while still heading for the fifth weekly profit in a row, following a speech by Bank of England Governor Mark Carney today.
As of 04:18 GMT, GBP/USD fell 0.21% to 1.3081, with an intraday low at 1.3072, and a six-week high at 1.3143.
BoE Governor Carney warned that failing to reach a Brexit deal might lead to consequences similar to the financial crisis, with nearly a 35% drop in house prices in the next three years.
Bank of England's policymakers voted this week to hold the official bank rate at 0.75%, and the assets purchase program at £435 billion as expected by analysts.
US Retail Sales, Industrial Data
Earlier US data showed retail sales rose 0.1%, slowing down sharply from 0.7% in July, and missing estimates of 0.4%.
Import prices fell 0.6% m/m, compared to no change in July, while analysts expected a 0.2% drop.
US industrial production rose 0.4% in August, same as July, and beating estimates of a 0.3% increase.
The capacity utilization rate rose to 78.1% from 77.9% in July, missing estimates of 78.3%.
University of Michigan released its survey on consumer sentiment, showing a surge to 100.8 in September, the best in six months, from 96.2 in August, beating estimates of 96.7.