The pound GBPUSD, +0.03% jumped back above $1.40 on Monday after reports the European Union agreed on the broad terms of a two-year transition period for the U.K. when Brexit kicks in next year. The Wall Street Journal reported that EU diplomats dealing with Brexit on Monday had approved the agreement, just hours before the EU's and the U.K.'s Brexit negotiators, Michel Barnier and David Davis, were set to meet in Brussels. Sterling climbed to an intraday high of $1.4045, its highest level since Feb. 26, according to FactSet data. The pound had traded as low as $1.3913 earlier on Monday compared with $1.3944 late Friday in New York.