Sterling jumped above 1.3200 barrier after release of UK jobs data but gains were so far short-lived.
Average earnings surprised at 2.2% rise in August, beating 2.1% forecast, with previous month’s release being revised higher from 2.1% to 2.2%.
Positive tone was soured by downbeat UK jobless claims which unexpectedly rose by 1.7K in September against forecasted rise by 1.0K, while August figure was revised upward from -2.8K to -0.2K.
UK unemployment remained unchanged at 42-year low at 4.3%, as expected.
Better than expected wage growth is positive signal for BoE and is expected to cement bets for rate hike which is widely expected in November and will mark the first rate hike in a decade.
The central bank said it expects pay growth to pick up speed as unemployment rate stays below 4.5% which is seen as a trigger for inflation pressure in the economy.
Pound moved lower after markets digested data and is pressuring pivots at 1.3145/41, break of which would open way for fresh weakness towards next supports at 1.3100/1.3082.