The Bank of England is scheduled to announce a policy decision at 1200 GMT, but no change is expected, either to interest rates or to its quantitative easing target, with no accompanying statement likely to be released. This left sterling traders focused on events in Greece, with investor risk appetite helped after major banks and pension funds threw their weight behind the bond swap offer, meaning Greece would avoid a disorderly default. Investors were cautious before a deadline later on Thursday, however, and were also wary of taking on large positions before a European Central Bank meeting on Thursday and key US jobs data on Friday. This limited gains for the pound, analysts said. Sterling was up 0.4 percent at $1.5805, pulling away from this week's low of $1.5698, its weakest since Feb. 23. Traders said it extended gains after stop loss orders were triggered above $1.5790. The pound had chart support at the 100-day moving average at $1.5710 and the 55-day average at $1.5666. "There is a high probability that the Bank of England won't do anything. Sterling is being buffetted by events overseas, with a slightly positive risk environment helping," said Chris Turner, head of currency strategy at ING. "Before investors jump into sterling/dollar longs that could take it towards $1.60 they will wait for the PSI (Greek debt swap deal) to see whether collective action clauses are employed." Greece is hoping for a 90 percent take-up, but it has said if it obtains approval from two thirds of those who respond to the offer it will trigger collective action clauses, which allow it to impose the deal on all its bond holders. A Wall Street Journal report suggesting Fed officials were considering buying longer-dated bonds and sterilising the money flow by draining funds in the banking system was also positive for riskier assets. The euro was down 0.1 percent against the pound at 83.44 pence, with traders reporting selling by an Asian sovereign which weighed on the single currency. However, a reported options expiry later at 83.40 pence may keep the euro close to that level. "There may be more scope for movement in EUR/GBP in reaction to any euro area news," analysts at Lloyds said in a note to clients. "83.80 pence is likely to be seen as an initial sell level, but a break above there would suggest scope to 84.20. 83.10/20 remains the main downside support area." Recent UK data has pointed to signs the UK economy may be starting to recover. However, investors remained wary that the Bank of England may opt for further asset purchases under its quantitative easing programme later in the year, given UK growth is expected to be sluggish at best. "There is not enough daylight between the UK and the euro zone economies to get euro and sterling trading independently of each other," said ING's Turner, adding the scope for short-term falls in the euro may be limited.