Continue to watch him and each time he tries, correct him with the short tug and NO.. You should start noticing him looking at you before he starts to lift the leg. And it shouldn't be long before he looks at you and doesn't do it, when this happens, praise him and give him a small special hot dog slice treat. I'd give him a couple of days on the leash and giving him treats for not even attempting to mark the bed before I move on to the next step.
At this point I'd still keep the leash on him and watch him, but you shouldn't have to watch him as closely. Just be prepared in case he slips back into his old ways. If he doesn't slip in a week or so, it should be safe to remove the leash. Until he's learned that marking his sleeping place is not allowed, I'd have him sleep somewhere beside in you bed. You can even keep the leash attached and slip it over your wrist so it wakes you up if he moves.
You will do the same thing with your bed as well. In addition, Any place the dog has urinated on needs to be cleaned with an enzymatic pet odor remover. It needs to soak in for as long as the urine did. If you clean with something different, it does not totally remove the odor and actually will draw the dog back to the area to eliminate again. You need to let it soak in because the original urine got down into the bedding. If you just clean the surface, the odor still remains deep in the object. We can not smell it, but the dog's sensitive nose can and again, it draws them back to eliminate again.
Between training and cleaning, it should take care of the problem. Obedience training can also help since a dog usually only marks around it's territory, so if you establish the house as yours by requiring absolute obedience from him all the time, he should stop marking around the house as well. It also has the added benefit of keeping him under control over the next year or so. Between 7 and 18 months of age, most owners of unneutered male dogs experience a lot of behavioral issues. Continuing obedience work with them during this time can help prevent these issues.
The following site is helpful for teaching you how to train your dog. Be sure and click on the link to the page on obedience at the bottom. and links on subsequent pages leading to detailed instructions.
Training works best if you train at least 30 minutes a day (two 15 minute sessions). I would start making your dog work via the Nothing in life is free program (NILF) as well. It is outlined below.
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