Sterling climbed to November 15 highs in American trade against the dollar, amid a lack of data from Britain and the US, and ahead of the crucial Brexit vote in British Parliament tomorrow.
As of 05:09 GMT, GBP/USD rose 0.34% to 1.2888, with a two-month high at 1.2930, and a session-low at 1.2819.
US President Donald Trump touted China's desire to continue trade talks, expressing confidence in his administration's ability to reach a suitable trade deal.
Otherwise, UK Prime Minister Theresa May said her country is facing a choice to either exit the EU without a deal or no Brexit at all if Parliament rejected her deal, warning it would lead to considerable damage to the economy in the short term.