GBP/USD trims daily gains after German officials denied Brexit concessions

• Pound moves sharply away from daily highs across the board. 
• GBP/USD back to 1.2900 after Reuters reports that German officials denied Bloomberg information about Brexit. 

The GBP/USD pair lost almost a hundred pips following a report from Reuters that German officials denied Bloomberg’s information about German and UK dropping key Brexit demands in order to reach a deal. The pound dropped sharply in the market, erasing most of the gains that followed the Bloomberg information. 

Cable peaked at 1.2983 two hours ago and recently fell to 1.2870. As of writing was trading at 1.2900, still up for the day (+40 pips) and more than a hundred pips away from the daily low. 

The bullish tone eased significantly but the pair is still holding to gains, headed to the first gain after four losing days in-a-row. The bullish correction is been supported by a retreat of the US dollar and some potential profit taking. 

GBP/USD Levels to watch 

To the downside, the immediate support is seen at 1.2860/70, a break lower would increase the negative intraday tone. Below support levels are seen at 1.2840 (20-day moving average) and 1.2790. To the upside, resistance levels are seen at 1.2935, 1.2980/85 (daily high) and 1.3020.