GBP/USD now struggling to sustain above 1.39 handle

   •  Investors look past today’s weaker UK GDP figures.
   •  Subdued USD price action prompts some short-covering.

The GBP/USD pair quickly reversed a dip to fresh 6-day through and spiked nearly over 50-pips from session lows, albeit once again failed to sustain above the 1.3900 handle.

The latest leg of a volatile move, from an intraday low level of 1.3857 to 1.3914, lacked any fundamental trigger and hence, the pair quickly retreated around 35-pips to currently trade around 1.3880 region. 

With investors looking past a downward revision to the fourth quarter UK GDP growth figures, a subdued US Dollar price-action, primarily led by some softness in the US Treasury bond yields, helped the pair to bounce off lows. 

However, the sentiment surrounding the British Pound remained weak on the back of uncertainty surrounding the upcoming Brexit talks and hence, every attempted recovery move is now being utilized as an opportunity to initiated fresh short-positions.

Traders now look forward to the US economic docket, highlighting the release of usual weekly jobless claims, which although is unlikely to be a major game changer but might still help grab some short-term opportunities.

Technical levels to watch

On a sustained break below mid-1.3800s, the pair is likely to accelerate the fall towards the 1.3800 handle en-route 1.3770-65 strong horizontal support. On the upside, any recovery move back above the 1.3900 handle might continue to confront some fresh supply near the 1.3915 region, above which a bout of short-covering could lift the pair back towards the key 1.40 psychological mark.