GBP/USD hammered down to 1.4100 neighborhood

   •  Goodish USD rebound triggers the initial leg of profit-taking slide.
   •  GBP further weighed down by some cross-driven weakness.
   •  Technical selling below 1.42 mark aggravates the downfall.

The GBP/USD pair extended its sharp intraday retracement slide from closer to near 8-week tops and is now fast approaching the 1.4100 handle.

The US Dollar staged a solid rebound this Tuesday, supported by easing trade war fears and a goodish pickup in the US Treasury bond yields, and prompted the initial leg of profit-taking slide. 

The pair's heavily offered tone could also be attributed to some cross-driven weakness, led by a knee-jerk short-covering rally in the EUR/GBP cross and a sudden retracement in the GBP/JPY cross. 

Meanwhile, possibilities of some heavy long-unwinding pressure, on a sustained break below, further collaborated towards accelerating the pair's downfall to the 1.4100 neighborhood.

It would now be interesting to see if the pair is able to find some support at the lower level or some follow-through technical selling continues exerting downward pressure. Traders now look forward to the release of CB's Consumer Confidence Index, the key highlight from a rather lighter US economic docket. 

Technical levels to watch

Immediate support below the 1.4100 handle is pegged near the 1.4080-75 region, below which the pair seems vulnerable to head back towards retesting the key 1.40 psychological mark. On the upside, any meaningful recovery move might now confront some fresh supply near the 1.4155-60 region, which if cleared could lift the pair back towards reclaiming the 1.4200 round figure mark.