• Unconfirmed talks of a letter on EU reassurances by Monday triggered some short-covering bounce.
• The positive move gets an additional boost from news that Brexit could be delayed beyond 29 March.
The GBP/USD pair quickly reversed an early European session dip to the 1.2710 region and spiked to 1-1/2 month tops in the last hour, albeit quickly retreated few pips thereafter.
After a rather muted reaction to the UK macro data – monthly GDP growth figures and visible trade balance, the British Pound picked up the pace following an unconfirmed talk of the EU reassurances on the backstop.
The pair extended the intraday bounce and rallied to mid-1.2800s, the highest since late-Nov. in reaction to the latest headlines, via Evening Standard – citing Cabinet ministers, that Brexit could be delayed beyond 29 March.
Although the official confirmation is still awaited, the news prompted some aggressive short-covering move and turned out to be one of the key factors behind the pair’s strong intraday upsurge of nearly 150-pips.
Technical levels to watch
Today Last Price: 1.2823
Today Daily change: 77 pips
Today Daily change %: 0.604%
Today Daily Open: 1.2746
Previous Daily SMA20: 1.2682
Previous Daily SMA50: 1.2769
Previous Daily SMA100: 1.2894
Previous Daily SMA200: 1.313
Previous Daily High: 1.2805
Previous Daily Low: 1.2728
Previous Weekly High: 1.2815
Previous Weekly Low: 1.2438
Previous Monthly High: 1.284
Previous Monthly Low: 1.2477
Previous Daily Fibonacci 38.2%: 1.2757
Previous Daily Fibonacci 61.8%: 1.2776
Previous Daily Pivot Point S1: 1.2714
Previous Daily Pivot Point S2: 1.2682
Previous Daily Pivot Point S3: 1.2637
Previous Daily Pivot Point R1: 1.2791
Previous Daily Pivot Point R2: 1.2837
Previous Daily Pivot Point R3: 1.2869