GBP/USD: 1.3075 becomes an immediate challenge as Brexit optimists fail to ignore trade positive news

• GBP/USD trades near 1.3070 on early Monday.
• The pair initially gained on report favoring delayed Brexit.
• However, upbeat tweets from the US President restricted the pair’s following advances.

The GBP/USD pair struggles around 1.3070 while heading towards European open on Monday. The pair fall short of extending Brexit-led early-day rise as positive news concerning the US-China trade deal challenged buyers.

The British Pound extended previous gains during early Monday after the Telegraph said it learned that the Brexit will be delayed for up to two months under plans being considered by Theresa May to extend Article 50. The report also mentioned that the UK PM Theresa May will delay a parliamentary vote on her recent Brexit proposal by two-weeks to March 12.

Additionally, media reported were also going rounds that senior EU figures and several governments support an extension of as much as 21 months to the Brexit day beyond scheduled March 29.

With the report favoring a delayed Brexit, the GBP buyers were pleased. However, they couldn’t remain happy for long as tweets from the US President Donald Trump became trade watchers’ favorites.

Trump tweeted on late-Sunday that the US-China trade talks are very progressive and he will delay the March 01 deadline for tariffs hike on China’s products. He also said will hold a summit with his Chinese counterpart in Florida.

Given the upbeat news on trade supporting the USD strength contrast to welcome Brexit developments helping the GBP, the GBP/USD pair is struggling around immediate resistance-line.

GBP/USD Technical Analysis

An immediate descending trend-line connecting highs marked since February 20 seems restricting the pair upside at 1.3075, a break of which can propel the pair to 1.3100 and 1.3130 afterward.

On the downside, 1.3040, 1.3000 and 1.2970 are likely nearby supports for the pair traders to watch during its pullback.