The pound steadied early on Wednesday following a volatile overnight session after British lawmakers defeated Prime Minister Theresa May's Brexit divorce deal by a crushing margin.
The Parliament on Tuesday voted 432-202 against May's deal, the worst parliamentary defeat for a government in recent British history.
Sterling had sunk more than 1 percent against the dollar earlier on Tuesday but rallied back after the parliamentary vote, with the sizable defeat for May seen forcing Britain to pursue different options.
However, there are also worries the outcome might trigger political upheaval that could lead to a disorderly exit from the European Union.
The pound traded a shade higher at $1.2864 after gyrating between a low of $1.2670 and a high of $1.2917 on the previous session.
Source : Reuters