Sterling leaped to an almost two-week peak on Tuesday after the dollar dropped on comments from U.S. President Donald Trump that he was not satisfied with the Federal Reserve's monetary policy.
The British currency advanced to $1.2846 on before sliding to $1.2823 as investors sell the greenback overnight. It wobbled versus a broadly stronger euro, losing 0.1 percent to 89.84 pence.
The pound has rebounded in recent days from a 14-month trough, climbing near two cents from $1.2662 touched last week.
Although investors remain anxious ahead of series of talks between London and Brussels amid rising concerns that Britain will not be able to reach a favorable trade deal with its main partner before the end of March 2019.