GBP/USD Forecast: Rejected At A Descending Trend-line Resistance

On Monday, the GBP/USD pair initially rose to a six-day high level of 1.4070 but later witnessed a sharp intraday reversal of over 140-pips. Early strong gains were supported by the BOE Deputy Governor Dave Ramsden's comments over the weekend, which added to speculations that the UK central bank will raise interest rates again in May. Traders, however, looked past hawkish remarks and seemed inclined to unwinding their bullish positions from a short-term descending trend-line resistance. 

The pair now seems to have entered a consolidation phase as investors brace for a much busier Tuesday, featuring the release of durable goods orders and consumer confidence report from the US, which along with the Fed Chair Jerome Powell's first testimony before the House Financial Services Committee should provide some fresh directional impetus. There aren't any important market moving economic releases due from the UK and hence, the US Dollar price dynamics might act as an exclusive driver of the pair's momentum on Tuesday.

Technically, a follow-through retracement below the 1.3910-1.3900 area would pave the way for an extension of the pair's retracement slide toward mid-1.3800s en-route the 1.3800 handle and a strong horizontal support near the 1.3765-60 region. 

On the upside, the 1.3990-1.4000 region might now act as an immediate hurdle, above which the pair is likely to head back toward challenging the trend-line resistance, currently near the 1.4055-60 region. A convincing break through the mentioned barrier would negate any near-term bearish bias and lift the pair back toward reclaiming the 1.4100 handle ahead of the next major resistance near the 1.4140-45 region.