GBP/USD finds some support near 1.39 handle

   •  USD demand reemerges after Powell’s prepared text of the testimony.
   •  GBP further weighed down by Barnier’s comments on Brexit transition period.

The GBP/USD pair extended its rejection slide from the 1.40 neighborhood and refreshed session lows during the early NA session.

The pair met with some fresh supply on the back of resurgent US Dollar demand after the text of the prepared text of the Fed Chair Jerome Powell's first congressional testimony indicated that gradual rate hikes will continue. 

The British Pound was further weighed down by the EU Chief Brexit negotiators Michel Barnier's comments, negating the possibilities to extend Brexit transition period beyond 2020. 

The selling pressure, however, seems to have abated near the 1.3900 handle, at least for the time being and was being supported by today's weaker than expected US durable goods orders data. 

Investors now look forward to Powell's post-testimony Q&A session for some fresh clues over the central bank's monetary policy outlook, which would drive sentiment surrounding the greenback and eventually provide some fresh impetus. 

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes, “the risk is skewed toward the downside in the short term, as in the 4 hours chart, the pair is developing below a relevant Fibonacci level, and a horizontal 20 SMA, both around 1.3960. In the same chart, technical indicators head south around their mid-lines, with limited strength at the time being. The pair is barely holding above its Monday's low of 1.3927, now the immediate support ahead of the 1.3880 region.  Spikes beyond 1.4000 are still seen as selling opportunities, with the warning that Powell's words may result in a broad dollar's sell-off that will limit chances of a correction later in the day.”