Sterling was little changed on Friday morning, despite news that Theresa May had finally managed to agree a Brexit divorce deal with the EU.
As at 0727, sterling was 0.1% higher against the dollar.
Earlier, the pound had risen above the $1.35 mark on news that the UK and EU struck a compromise on Brexit early on Friday morning, allowing trade talks to begin between the two sides.
However, sterling was then subject to some profit taking as traders considered the impact of Brexit.
While Friday´s announcement appeared to be a step forward, the pound´s longer-term prospects will hinge on what type of trade deal the UK actually agrees with the EU.
Theresa May signed a 15-page “progress report” with Jean-Claude Juncker, the European Commission president, on Friday morning.
May pledged there would be no hard border in Ireland.
The outline agreement also provides rights for EU citizens living in the UK and a divorce bill of €40bn-€60bn.