GBP/USD extends softer UK data-led slide, slips below 1.39 handle

   •  Markets looked past Thursday’s hawkish BOE decision.
   •  Disappointing UK data prompts some fresh selling.
   •  Technically seems vulnerable to slide further. 

The GBP/USD pair extended its post-UK data retracement slide and has now slipped below the 1.3900 handle, or fresh session lows. 

The British Pound started losing ground after today's disappointing UK data, showing UK industrial production contracted 1.3% and the trade deficit widened to £13.58 billion in December. 

Meanwhile, investors now seemed to look past Thursday's hawkish BOE signals, with a modest pickup in the US Dollar demand further collaborating to the pair's downfall from the 1.40 neighborhood touched during the early European session.

Against the backdrop of yesterday's sharp retracement post-BOE swing highs, the pair's inability to move back above the key 1.40 psychological mark now seems to suggest that the near-term corrective fall might still be far from being over. 

Hence, a follow-through weakness, led by some fresh technical selling and back towards the 1.3840-35 strong horizontal support, now looks a distinct possibility. Traders now look forward to the NIESR UK GDP Estimate for any fresh bullish impetus. 

Technical levels to watch

Immediate support remains near the 1.3840-35 region, below which the pair is likely to accelerate the fall towards the 1.3800 handle en-route 1.3760 support. On the flip side, 1.3945-50 area might now act as an immediate resistance, which if cleared could assist the pair to make a fresh attempt towards conquering the 1.40 handle.