The cable remained buoyant against the dollar in the London session as traders rallied the pound after a positive housing market report.
According to Nationwide Building Society the UK housing prices rebounded in January after the first decline in 3 years in December. The latest batch of positive economic data from UK continues to fuel speculations about the next BoE rate decision. The latest sentiment reflects the possibility of a rate increase, as UK economy remains resilient despite highest interest rate amongst G7 countries.
The sterling was quoted at 1.8825-30 against the dollar, .6920-23 versus the euro and 194.57-65 against the Japanese yen t 12:30 GMT.
London stocks gained buoyed by the news about the acquisition bid for LSE by Deutsche Borse and spectacular earnings results by AstraZeneca. The FTSE 100 added 0.1 percent at 4,850.3 while the mid-cap FTSE 250 added 3 points at 7113.0.
AstraZeneca, the UK's second-largest pharmaceuticals company, added 2.3 percent to GBP19.46 as the company reported better than expected earnings results.
London Stock Exchange was up 1.3 percent at 580.5p after the Europe's biggest stock market rejected latest Deutsche Borse's offer.
The mining sector posted further gains with BHP Billiton gaining 1.2 percent at 661p after the company announced an increase in production.
Antofagasta added 1.3 percent at GBP12.02 on sector related buying. MMO2 fell 0.4 percent to 124.5p after the company announced that its losing subscribers.
Chrysalis shed 9.9 percent to 164.5p after the media group lowered its full year guidance.
Skyepharma rose 5.3 percent to 65p as bid speculation boosted the pharmaceutical group.
The UK Gilts fell as traders pushed the yields higher after the release of better than expected UK's housing data. UK housing prices rebounded in December adding to speculation that BoE will keep its rate unchanged and may even increase them in the future. The 10 Year UK Gilt fell 0.33 to 102.76 pushing the yields higher by 4 basis points to 4.64 percent. The Long Gilt futures for March delivery lost 0.08 to 110.65.