Sterling was up around 0.75 per cent against the dollar to sit at 1.229 by earning morning, the pound also edged up against the euro to 1.54.
The dollar suffered a large sell-off after Donald Trump's press conference last night.
Investors were said to be disappointed by the president-elect's lack of detail around future spending plans.
While yesterday Bank of England Governor Mark Carney admitted Brexit is now a bigger risk for the continent than it is for the UK.
This represented a major climbdown for the banking chief.
In the run-up to the referendum the central bank had warned a vote to leave could have devastating impact on Britain's economy.
The pound had suffered recently, following comments by Theresa May that indicated the UK is likely to leave the single market.
Earlier this week experts warned Britain's currency is set for major volatility in the coming months, as details around the exit from the European Union (EU) continue to emerge.
But the pound could be set for a major comeback, amid economy growth as receding nerves around the vote to leave.
Kathleen Brooks, research director at City Index, said: "We expect GBP to remain the most volatile of the G10 currencies in the coming months while we wait for the triggering of Article 50.
"Essentially the market is likely to re-establish shorts in GBP, after a brief respite at the end of last year, until it is quite confident that Brexit won’t be ‘hard’ or disastrous for the UK economy."