The pound inched up after British Prime Minister Theresa May said she would step down if lawmakers vote in favour of her twice-defeated EU divorce deal.
May's last-ditch attempt to persuade rebels in her Conservative Party to back her lifted the pound slightly but uncertainty about how, or even if, Brexit will proceed kept investors wary.
Britain's parliament are trying to find an alternative to May's Brexit deal and this evening lawmakers will take part in a series of indicative votes on how to break the impasse.
Eight options range from leaving abruptly with no deal to revoking the divorce papers or holding a new referendum.
With British politics at fever pitch traders are struggling to navigate the blizzard of headlines. The pound is volatile but remains around the same levels it traded at in late January.
Sterling on Wednesday traded in a narrow range reflecting suspicion in the market about the parliamentary votes yielding a decisive conclusion.
There is no guarantee the so-called indicative votes will bind the government.
The pound rose 0.25% to a day's high of $1.3245 in a broadly quiet session. Against the euro, it strengthened 0.3% to 85 pence.
