Sterling gains vs weaker dollar; UK data awaited

* Sterling up 0.5 pct vs dollar GBP=D4, edges up vs euro

* Pound helped by broad pullback in dollar

* UK CBI distributive trades survey awaited at 1000 GMT

LONDON, Aug 26 (Reuters) - Sterling rose against the dollar on Thursday, buoyed by short covering after recent falls and as the U.S. currency came under pressure following weak economic data.

Investors awaited a Confederation of British Industry retail sales survey at 1000 GMT, which is expected to show growth slowing in August though staying above the average of the past year. ECONGB

The dollar pared some of its recent gains against sterling and other perceived riskier currencies after weaker than forecast U.S. durable goods orders and a dive in housing sales in July contrasted with a strong IFO sentiment survey in Germany.

This helped the pound recover further from a one-month low versus the dollar hit earlier this week, when it was stung by comments from a Bank of England policymaker that Britain faces the risk of sliding back into recession.

"Sterling has seen a short squeeze higher against the dollar, which has come off against most other currencies," said Lauren Rosborough, currency strategist at Westpac.

She added that investors were squaring positions ahead of U.S. jobless claims data at 1230 GMT that will provide more clues on the health of the U.S. economy and ahead of a speech by Federal Reserve chairman Ben Bernanke on Friday.

At 0755 GMT, sterling was 0.5 percent higher against the dollar at $1.5542 GBP=D4, recovering from a one-month low of $1.5373 hit on Tuesday.

The pound has risen back above its 200-day moving average, which currently stands at $1.5457, but technical analysts said it will need to close above that level for downside risks to diminish.

"Sterling has been on the defensive against the dollar amid the rise in global risk aversion, perhaps more than was deserved and so it has capitalised on the overnight profit-taking in the dollar," Daragh Maher, strategist at Credit Agricole said in a note.

Sterling edged up against the euro EURGBP=D4, which dipped 0.1 percent to 81.76 pence. Resistance is seen near the 82.48 area, a high struck late last week.

Sterling remains vulnerable, however, to any rise in risk aversion as investors fret about a weakening global economic outlook, prompting them to seek the safety of currencies like the dollar and Swiss franc.

(Reporting by Jessica Mortimer; Editing by John Stonestreet)