Sterling was modestly softer against its U.S. peer, as in typical fashion investors thought it was too risky to bet against the greenback before a key U.S. jobs report.
In recent sessions the pound has flirted with new multi-month highs against the dollar amid improving confidence in the durability of Britain's economic revival.
Europe's third biggest economy could get a big confidence boost if Friday's figures show growth in Britain improved during the third quarter, which according to forecasts is on the cards.
Sentiment should also take direction from Bank of England minutes that are set for publication on Wednesday. Bank records that show a new round of monetary stimulus off the table for now should support the pound.
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