Sterling surged nearly one percent in American trade to July 10 highs against the greenback, following earlier data from Britain and the US.
As of 04:19 GMT, GBP/USD rose 0.72% to 1.3239, with an intraday low at 1.3135, and a ten-week high at 1.3298.
Earlier UK data showed retail sales rose 0.3% m/m in August, slowing down from 0.9% in July, while analysts expected a 0.2% dip, as core sales, excluding fuel, rose 0.3%, slowing down from 1.1%.
On a yearly basis, retail sales rose 3.5%, also slowing down from 4.0%, while beating estimates of 2.3%.
Otherwise, earlier US data showed unemployment claims fell 3 thousand in the week ending September 15 to 201 thousand from 204 thousand, besting estimates of 210 thousand, while continuing claims fell to 1.645 million in the week ending September 8, beating estimates of 1.705 million.
The Philly manufacturing index rose to 22.9 from 11.9, beating expectations of 17.5.
US existing home sales were unchanged in August at an annualized 5.34 million units, compared to a 0.7% dip in July, while analysts expected a 0.5% increase to 5.37 million.