GBP/USD meets fresh supply, down to test 1.4170

• Bears continue to guard the 1.4200 barrier, despite Brexit optimism.
• UK CBI realized sales and US Q4 GDP to offer fresh impetus?

The GBP/USD pair ran into resistance once again at the 1.42 handle, triggering a fresh sell-off amid resurgent USD demand across the board.

The greenback caught a fresh bid-wave across its main competitors last hour, as the European traders hit their desks and reacted to the renewed optimism over the US-North Korea nuclear issue.

Meanwhile, the latest leg up in the US dollar can be also attributed to the month/ quarter-end flows, playing out negatively on Cable. The USD index trades +0.15% higher at 89.10, having reversed sharply from 88.90 lows.

The spot rallied nearly 50-pips in the Asian session today after the Brexit headlines underpinned the sentiment. The Times reported that the Irish officials have been told to expect new plans "imminently" from Britain on how it plans to avoid a post-Brexit hard border.

Heading into Europe, “traders now look forward to the UK CBI realized sales for some short-term opportunities but the key focus would be on the release of final US Q4 GDP print, which is expected to be revised higher,” Haresh Menghani, Analyst at FXStreet writes.

GBP/USD levels to watch

According to Karen Jones, Analyst at Commerzbank, “GBP/USD is struggling just ahead of the 1.4272 200 week ma and the 1.4340/45 recent high and long-term Fibonacci retracement. Support is offered by the 55-day ma at 1.3966/77. Below here lies the four-month uptrend line at 1.3869. Further support can be seen between the February and the current March lows at 1.3765/12 and also at the 1.3658 September peak.”