GBP/USD surges to 1.3900 handle but lacks follow-through

   •  Spikes over 60-pips from session lows to challenge 1.39 supply zone. 
   •  Traders to wait for a strong buying before positioning for additional gains.

The GBP/USD pair quickly reversed a mid-European session dip, back to session lows, and is now looking to build on its momentum beyond the 1.3900 handle. 

The pair's sudden upsurge of over 60-pips in the past hour or so lacked any obvious catalyst but was supported by a subdued US Dollar price-action. Against the backdrop of Friday's sluggish US wages growth data, a modest retracement in the US Treasury bond yields weighed on the greenback and helped the pair to catch some strong bids, for the second consecutive session.

The bullish momentum, once again, seemed to be facing some stiff resistance near the 1.3900 handle. Hence, it would be prudent to wait for a strong follow-through buying interest before positioning for any further near-term appreciating move. 

With an empty US economic docket, a clear breakthrough the mentioned hurdle might trigger a fresh bout of short-covering and lift the pair further towards a short-term descending trend-line resistance, currently near the 1.3930-35 region. 

Technical levels to watch

Bulls would be eyeing for a sustained move beyond the 1.3930-35 resistance, above which the pair could aim towards reclaiming the key 1.40 psychological mark. On the flip side, 1.3840 level now seems to have emerged as an immediate support, which if broken could accelerate the fall back towards the 1.3800 handle en-route 1.3765 strong horizontal support.