GBP/USD tumbles to lows, risks breaking back below 1.41 handle

   •  Final US GDP growth figures underpin strong USD demand.
   •  GBP weighed down by disappointing domestic data.
   •  Technical selling aggravates the downfall over the past hour.

The GBP/USD pair extended its rejection slide from the 1.4200 handle and refreshed session lows during the early NA session. 

A fresh wave of US Dollar buying interest, in what could be termed as a late reaction to a better-than-expected upward revision of the US GDP growth figures was seen as one of the key factors exerting downward pressure on the major.

This coupled with today disappointing UK CBI realized sales data, and possibilities of some fresh technical selling below mid-1.4100 further aggravated the selling pressure and collaborated to the pair's downfall to the 1.4100 handle.

Meanwhile, the pair's inability to build on its strong recovery of around 150-pips, from overnight swing lows, now seems to suggest that the pair's recent bullish momentum might have already run out of steam. Hence, a follow-through weakness, back towards retesting the 1.4075-65 support area, now looks a distinct possibility.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “The 4 hours chart shows that the pair is developing below a bullish 20 SMA but above a daily ascendant trend line, while technical indicators are stuck around their mid-lines, with no clear directional strength, all of which leaves a neutral stance at the time being.  Advances beyond 1.4200 have been quickly reverted lately, with the pair topping this week at 1.4245. Gains beyond this level could encourage bulls and attract more buyers. On the contrary, the weekly low was established at 1.4065, where buyers re-surged. A break below the level is then required to confirm additional declines today toward the 1.4000 region.”