Sterling rose in American trade off February 2017 lows for the third straight session against the dollar, amid a lack of data from Britain and following earlier US services data.
As of 05:07 GMT, GBP/USD rose 0.26% to 1.2756, with an intraday high at 1.2787, and a low at 1.2701.
UK Prime Minister Theresa May said her government is working to get more guarantees when it came to the Brexit deal with the EU, adding talks are still ongoing with the Parliament expected to have a larger role with the deal later on.
The government's spokesman said May is forming a ministerial committee that includes 21 ministers to prepare for a no-deal Brexit scenario and shield the economy from potential ramifications.
Otherwise, earlier US data showed the ISM services PMI receded to 57.6 in December from 60.7 in November, missing estimates of 59.6.