I have a green card and i married a British citizen last year. I applied for 1-130 last year march when my wife was here visiting. Recently, she was denied entry into the country and her waiver rights were revoked because the immigration officer said she has been coming too frequently and staying too long although the longest she has stayed is eight weeks. My question is, can i transfer the 1-130 application to England instead of pursuing it here?

It happens. She has immigration intent (you filed for I-130) so she can't really use visa waiver. Go http://www.usembassy.org.uk/ and see what other visas are available.