The cable remained subdued against the dollar in London after yesterday's sharp upmove.
The pound rose against the dollar after the US trade balance printed -$56.4 billion, the second largest deficit on the record. The bearish dollar sentiment was further boosted by the news of North Korea openly admitting possession of the nuclear weapons and its withdrawal from bi-lateral negations for disarmament.
The British pound was quoted at 1.8636-41 against the dollar, .6897-.6900 versus the euro and 197.30 against the Japanese yen at 13:00 GMT.
London equities continued its upward momentum as traders pushed the overall market above psychologically important 5000 level.
The FTSE rose 0.4 percent to 5,021.9 while the mid-cap FTSE 250 was 0.1 percent firmer at 7,355.6.
Corus gained of 3.9 percent to 59.75p on rumors that the steelmaker was raising additional capital.
Gallaher a tobacco company traded 2.2 percent higher to 855.5p on rumors about the possible bid from Japan Tobacco.
Xstrata rose 1 percent to GBP10.47 after the Australian government approved its hostile bid for WMC Resources
Rio Tinto was up 1.6 percent and BHP Billiton, 1.7 percent higher at 677.5p as the companies were cited as potential "white knight" bidders.
SMG, the Scottish television and radio group rallied 4.3 percent to 108.75p after Lord Waheed Alli made an offer for SMG's Virgin Radio business.
Manchester United was up 3.4 percent to 283.25p following the reports that the football club agreed to the due diligence process following a takeover offer from US sports tycoon Malcolm Glazer.
Cobra Biomanufacturing rallied sharply 31.9 percent to 46.5p after the biopharmaceuticals manufacturer announced a major deal with an undisclosed US company.
UK Gilts lost ground as traders continued to take profits following a three-day rally earlier in a week. Long Gilt futures contract for March delivery fell .27 to 111.67.