Sterling has traded flat against the dollar and higher against the euro as more signs of political and economic turbulence after Britain's vote to leave the European Union stopped short of providing a clear catalyst for more sales.
Analysts and traders are convinced further weakness is on the cards after sterling slipped below $1.30 for the first time in three decades on Wednesday.
A number of banks are now forecasting a fall to the low $1.20s and others expect eventual parity with the euro, compared with current levels of around 85 pence.
A generally brighter mood on financial markets globally in the European morning helped the British pound among other currencies regarded as higher risk.
But that buoyancy faded as the day drew on and the NIESR think tank was the latest to warn of a "marked" slowdown after June.
There was no obvious reaction to news that the ruling Conservative Party is set to choose between interior minister Theresa May and eurosceptic rival Andrea Leadsom as its leader and nominee for prime minister when David Cameron steps down.
"Risk has been a little bit less well supported in the afternoon than it was this morning, but the moves in general have been quite small in comparison to what we have seen on sterling in the past week," said Sam Lynton Brown, a strategist with BNP Paribas in London.
"Our view is that sterling is likely to remain quite heavy."
The suspension of half a dozen open-ended property funds this week - taken as a sign of growing financial stress after the Brexit vote - has dominated trading, but some brighter US economic data has helped lift the mood somewhat.
Sterling traded unchanged on the day at $1.2920 and 0.3% stronger at 85.592 pence per euro.
