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

   “¢   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.

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