In early European session today, the UK sterling recovered from its late Asian session's loss against other major currencies and spiked higher after a report showed at 4:30 am ET that the UK economy grew at its fastest pace in nine years in the second quarter of this year.

Thus far, the pound  soared to a 6-day high against the euro, 4-day high against the yen, 1-week high against the franc and a 7-week high against the dollar.

The British economy grew at a pace of 1.2% sequentially in the second quarter, unchanged from the estimate published in August, the Office for National Statistics said today. This was the biggest growth since the first quarter of 2001. GDP growth was 1.7% higher than the second quarter of 2009.

A separate report from the ONS showed that business investment in the UK increased by a revised 0.7% between April and June compared to three months ago to 29.2 billion pounds. Compared with the June quarter of 2009, total business investment increased 1.9%.

The pound that fell to a 4-day low of 1.5782 against the dollar at 3:05 am ET Tuesday and 132.89 against the yen at 3:35 am ET gained thereafter. As of now, the pound is trading at a 4-day high of 133.70 against the yen and a 7-week high of 1.5876 against the dollar, compared to yesterday's close of 133.47 and 1.5829, respectively. The next upside target level for the pound is seen at 135.0 against the yen and 1.600 against the dollar.

After hitting a 4-day low of 1.5510 against the franc at 2:10 am ET Tuesday, the pound strengthened. At present, GBP/CHF pair is trading at a 1-week high of 1.5652 with 1.570 seen as the next upside target level. At yesterday's close, the pair was quoted at 1.5605.

The pound is currently trading at a 6-day high of 0.8470 against the euro, compared to a low of 0.8520 hit at 2:05 am ET. If the pound gains further, it may likely target the 0.840 level. EUR/GBP rally closed yesterday's trading at 0.8501.