LONDON, July 17, 2018 (News Wires) - Sterling edged higher on Tuesday, lifted by broad dollar weakness, though gains were capped by data on slowing British pay growth and overnight Brexit headlines. With overall sterling bets leaning towards a net short compared with a large long position in April, traders grew wary of selling sterling aggressively at current levels. "Sterling moves have been quite muted despite the overnight negative headlines, and that may be because overall net positions in the market are quite small," said John Marley, an independent foreign exchange strategist. The British pound rose 0.1 per cent to $1.3251 as the dollar weakened against the euro and the Swiss franc. Sterling hit a post-Brexit referendum high of $1.4377 in mid-April but tanked more than 9 percent since then to an eight-month low of 1.3078 in late June. It has recovered somewhat but remains well below 2018 highs. However, pressure came in the form of data showing that British workers' average weekly earnings rose by 2.5 per cent on the year in the three months to May, slowing from the 2.6 per cent growth in the previous three-month period.