GBP/USD retreats farther below 1.3800 mark
| • Goodish USD rebound prompts some profit-taking.
• Technical studies suggest additional corrective slide.
The GBP/USD pair extended its retracement slide from fresh post-Brexit highs and refreshed session lows in the last hour, albeit quickly recovered few pips thereafter.
The pair stalled its bullish trajectory and once again failed to sustain early strength beyond the 1.3800 handle. The pair retreated from a key resistance near the 1.3835 region, marking February 2016 low, and was being weighed down by a goodish US Dollar rebound.
The pair's modest pull-back could also be attributed to some profit-taking, especially after the recent upsurges of around 375-pips from last Thursday’s swing low near the 1.3460 region and technically overstretched conditions.
In absence of any major market moving economic releases from the UK, broader market sentiment surrounding the greenback would continue to act as an exclusive driver of the pair's momentum on Wednesday.
Later during the early NA session, the US manufacturing data might also be looked upon for some short-term trading opportunities.
Technical levels to watch
Immediate support is pegged near the 1.3750-40 region, below which the pair is likely to accelerate the fall towards the 1.3700 handle en-route 1.3655 support. On the upside, the 1.3795-1.3800 region now becomes an immediate hurdle and any subsequent moves might continue to confront fresh supply near the 1.3835 area.
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