GBP/USD spikes to one-week tops, around mid-1.4000s

   •  Renewed USD selling helps build on last week’s sharp rebound.
   •  GBP further benefitting from hawkish BOE speak. 
   •  Bulls now look for a move beyond a short-term trend-line resistance. 

The GBP/USD pair continued gaining positive traction through the early European session on Monday and is currently placed at one-week tops, around mid-1.4000s. 

The pair built on last week's sharp rebound and has now added nearly 200-pips from the 1.3860 region touched last Thursday. A fresh wave of US Dollar selling bias provided an additional boost to the pair's recent up-move, supported by some positive Brexit news that the UK government is leaning towards a free-trade deal with the EU. 

The British Pound was further supported by hawkish comments by the BoE Deputy Governor Ramsden, saying that the central bank might raise rates sooner than previously anticipated if BOE's forecast of wage growth picking up to 3% is realized. 

It, however, remains to be seen if the pair is able to build on the bullish momentum and move past a short-term descending trend-line resistance as traders now look forward to the BOE Deputy Governor Jon Cunliffe's scheduled speech for some fresh impetus. 

In the meantime, the release of new home sales data from the US might also help traders grab some short-term trading opportunities during the early NA session. The key focus, however, would be on the Fed Chair Jerome Powell's first congressional testimony on Tuesday. 

Technical levels to watch

A follow-through buying interest has the potential to continue boosting the pair towards reclaiming the 1.4100 handle before eventually darting towards its next major supply zone near the 1.4130-35 region.

On the flip side, the 1.40 handle now becomes an immediate strong support to defend and any subsequent weakness below the mentioned support now seems to be limited to the 1.3960-40 support area.