Sterling retreated on Tuesday for another session amid high demand on the dollar and ahead of UK labor data today.
GBP/USD shed 0.3% to 1.2970, after losing 0.3% yesterday, the first loss in six days on profit-taking.
Sterling rose 1.3% last week against dollar, the third weekly profit in a row after upbeat UK growth data.
The dollar index rose 0.1%, marking four-month highs at 99.24.
Investors await important UK data, with jobless claims expected up 20.2 thousand in January.
The UK unemployment rate is estimated at 3.8%, while average earnings for the three months ending December are estimated up 3.1%.