In U.S. trading on Thursday, GBP/USD was trading at 1.5863, up 0.40%, up from a session low of 1.5776 and off from a high of 1.5875.
The pair was likely to find support at 1.5675, Monday's low, and resistance at 1.5892, the high from Jan. 23.
In the U.S. earlier, the Department of Labor reported that the number of individuals filing for initial jobless benefits last week rose by 38,000 to 368,000, compared to expectations for an increase of 20,000 to 350,000.
Personal incomes in the U.S., meanwhile, jumped 2.6% in December, the largest increase in eight years.
The news sent the dollar falling against the pound, especially in wake of a Federal Reserve decision to make no changes to interest rates and to its monetary stimulus programs.
Trading was somewhat subdued ahead of the release of the U.S. January jobs report on Friday.
Manufacturing activity in the Chicago-area expanded at a faster rate than expected in January, industry data showed on Thursday.
In a report, The Chicago purchasing managers’ index rose to a seasonally adjusted 55.6 in January from a revised reading of 50.0 in December.
Analysts had expected the index to improve to 50.5 in January.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP trading down 0.33% at 0.8558 and GBP/JPY up 0.68% at 144.92.
On Friday, the U.K. is to release data on manufacturing activity, a leading indicator of economic health.
The U.S. is to release the closely watched government report on nonfarm payrolls and the unemployment rate, while the Institute of Supply Management is to publish a report on manufacturing activity.
In addition, the University of Michigan is to release revised data on consumer sentiment.