GBP/USD tumbles to lows, around mid-1.4100s

   •  Cross-driven weakness prompts some aggressive long-unwinding trade.
   •  A goodish USD rebound further collaborated towards aggravating the fall.

The GBP/USD pair finally broke down of its Asian session consolidation phase and has now eroded a major part of previous session's strong gains to near 2-month tops.

The pair’s sudden plunge during the early European session on Tuesday lacked any fundamental trigger and could be attributed to some cross-driven weakness, stemming out of a knee-jerk spike in the EUR/GBP cross. 

Adding to this, possibilities of some short-term trading stops being triggered, on weakness back below the 1.4200 handle could also be one of the key factors behind a sharp retracement of around 90-pips over the past hour or so.

Meanwhile, receding fears of a full-blown US-China trade war, coupled with a renewed uptick in the US Treasury bond yields helped revived the US Dollar demand and further collaborated towards aggravating the selling pressure.

The pair seems to have found some support near mid-1.4100s, albeit a follow-through weakness, led by some fresh long-unwinding pressure, now looks a distinct possibility.

Technical levels to watch

Weakness below 1.4140 level might prompt some additional profit-taking slide and drag the pair back towards the 1.4100 handle en-route 1.4080-75 strong horizontal support. On the flip side, the 1.4200 handle might now act as an immediate hurdle, above which the pair is likely to aim towards challenging 1.4265 supply zone.