• GBP/USD struggled to preserve intraday gains and once again faced rejection near the 1.4000 mark.
• A strong pickup in the US bond yields underpinned the USD and exerted some pressure on the pair.
• The GBP bulls seemed unimpressed by the UK budget statement and disappointing US ADP report.

A sudden pickup in the USD demand dragged the GBP/USD pair to the lower end of its daily trading range, around the 1.3940 region but lacked any follow-through selling. The pair failed to capitalize on its intraday positive move and once again faced rejection near the key 1.4000 psychological mark. Following an early dip, the US dollar regained positive traction amid a sharp rise in the US Treasury bond yields. This, in turn, was seen as a key factor that prompted some fresh selling around the GBP/USD pair.

From a technical perspective, the support zone that surrounds the 1.3850 mark held on. Namely, after testing the zone, GBP/USD began a recovery. GBP/USD is stuck in a consolidation range between just under 1.4000 and 1.3850

Hence, it remains to be seen if the GBP/USD pair is able to capitalize on a directional breakout move from the consolidation range. Sustained weakness below the 1.3850 mark will reinforce the negative outlook. Support awaits at 1.3840, last week's trough. Further down, 1.2860 and 1.13830 are eyed. Critical resistance awaits a 1.40, which is a psychologically significant level and also the daily high.