The European Court of Justice said Monday that the U.K. can cancel Brexit without asking for permission from other European Union (EU) member states.
Sterling jumped to day's high, up about 0.12 percent to $1.2758 on the back of the news.
The decision followed the guidance given last week by a non-binding opinion to the court from a top European law officer.
The case was brought by a group of Scottish lawmakers who sought a legal ruling on if the U.K.'s request under Article 50 to leave the EU could be unilaterally revoked before the Brexit deadline of March 29, 2019.
Article 50 allows a country to trigger the process that takes them out of Europe's political and economic union. U.K. Prime Minister Theresa May invoked the exit clause in March 2017.