Sterling fell below the $1.35 line for the first time in a week on Wednesday as investors locked in profits after a rally, though some decent economic data stopped it dropping further.
British industrial output rose by a monthly 0.4 percent in November, compared with 0.2 percent in October, spurring an annual rise of 2.5 percent. Economists taking part in a Reuters poll had expected to see output rise 0.3 percent on the month and 1.8 percent for the year.
Sterling edged 0.4 percent lower at $1.3493, trimming some of its 4.5 percent rise over the last two months.
Against the euro, it has been a more mixed picture, with sterling oscillating around the 88 cents line over the past month as the pound regained some momentum against the single currency.