- GBP/USD trades near 1.3060 on early Monday.
- Reports that the Brexit will be delayed pleased the Pound buyers.
- The pair needs to cross 1.3100 resistance to aim for further upside else its pullback to 1.3000 can’t be denied.
GBP/USD trades positive around 1.3060 during initial Asian session on Monday. The pair took advantage of recent news concerning the Brexit that signal likely extension to the official deadline of the UK’s departure from the EU.
By the end of last week, the British Pound (GBP) registered gains versus the USD for the time in four weeks. The UK PM Theresa May’s struggle to avail a welcome at home Brexit deal from the EU officials seems to have played its role in rolling the expectations of a hard Brexit backward. PM May met few EU leaders, including the EU Commission chief Jean-Claude Juncker, during last week.
In addition to the weekdays, weekend news concerning Brexit was also upbeat. There were media reports saying few EU officials are ready to give as much as 21 months of extension to the formal date of March 29 when it comes to the UK’s departure from the EU.
As per the latest report from the Telegraph, the UK daily has 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 says that the PM May will delay a vote on her fresh Brexit plan by two-weeks to March 12.
The GBP bulls were pleased with the upbeat news favoring a delay in the UK’s departure from the EU; however, investors might still wait for official confirmation during the day prior to providing a strong push.
On the other hand, the USD was also being supported by the optimism for the US-China trade deal. The US President Donald Trump recently tweeted that he is ready to postpone tariff hikes on China from March 01 considering welcome developments at the negotiation table between the world’s two largest economies.
GBP/USD Technical Analysis
The pair needs to overcome the 1.3100 upside barrier in order to aim for 1.3130 and the 1.3200 resistances.
Should the pair continue falling behind 1.3100, chances of its pullback to 1.3000 and 1.2970 can’t be denied.
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