A spokesperson for the German government says the position of Berlin has not changed on Brexit. Reuters also quotes the official as saying that Germany has the full trust in Chief European Union Negotiator Michel Barnier.

The GBP/USD fell sharply and trades below 1.2900, down from the peak of 1.2982 recorded earlier. The move extends to a drop of over 100 pips. Support is seen at 1.2835 and 1.2800. Resistance awaits at 1.2840 and the peak of 1.2982.

Earlier, the Pound jumped on a Bloomberg report saying that Germany and the UK agreed on focusing on a smooth Brexit transition for now. Details of a future relationship will wait for later. The report that both countries accepted to abandon previous demands sent the GBP/USD higher. The UK is set to leave the EU on March 29th, 2019.

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