GBP/USD hit 1.5592 during European morning trade, the session low; the pair subsequently consolidated at 1.5611, easing 0.08%.
Cable was likely to find support at 1.5522, the low of September 3 and resistance at 1.5696, the high of August 20 and a two-month high.
Upbeat U.K. service sector data on Wednesday bolstered expectations that the BoE may have to raise interest rates sooner than it has indicated.
Markit said U.K. services purchasing managers’ index rose to 60.5 in August, the highest since December 2006, from 60.2 in July. Economists had forecast a decline to 59.0.
The report said new business grew for the eight successive month and the latest increase was the largest seen in more than 16 years.
Last month, the BoE pledged to keep rates on hold at record lows until the U.K. unemployment rate falls below 7%, something the bank sees as unlikely to happen for another three years.
The BoE was expected to keep monetary policy unchanged at the outcome of its policy meeting later Thursday.
Meanwhile, the dollar remained supported after upbeat U.S. manufacturing data on Tuesday reinforced expectations that the Federal Reserve could start to phase out stimulus measures as soon as this month.
Separately, investors remained cautious after the U.S. Senate's Foreign Relations Committee approved a resolution on authorizing limited U.S. military intervention in Syria. The full Senate is expected to vote on military action on September 9.
Sterling was steady against the euro with EUR/GBP dipping 0.02%, to hit 0.8451.
Later in the day, the U.S. was to release the ADP nonfarm payrolls report on private sector job creation, as well as the weekly government report on initial jobless claims.
In addition, the ISM was to release data on non-manufacturing activity in the U.S.
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