GBP/USD surges to mid-1.2800s and retreats amid a flurry of Brexit headlines

11 Jan 2019

   •  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

GBP/USD

Overview:
    Today Last Price: 1.2823
    Today Daily change: 77 pips
    Today Daily change %: 0.604%
    Today Daily Open: 1.2746
Trends:
    Previous Daily SMA20: 1.2682
    Previous Daily SMA50: 1.2769
    Previous Daily SMA100: 1.2894
    Previous Daily SMA200: 1.313
Levels:
    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

 

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