GBP/USD surges through 1.39 handle amid notable USD supply

   •  Fresh USD selling emerges on N. Korean headlines.
   •  A possible short-covering aggravates the up-move.
   •  Now seems poised to extend the bullish momentum.

The GBP/USD pair caught some strong bids near the 1.3910 region and is now looking to build on its momentum beyond the 1.3900 handle.

The pair resumed with its recovery move and jumped to fresh multi-day tops amid some renewed US Dollar selling bias. A fresh wave of intense USD selling emerged on the back of flashing news headline that North Korea is "ready to denuclearize if regime safety is assured" and was seen as one of the key factors behind the pair's strong up-move. 

Meanwhile, possibilities of short-term trading stops being triggered, on a sustained move above mid-1.3800s, might have also contributed to the pair's sharp upsurge over the past hour or so. 

Currently holding in positive territory, for the fourth consecutive session, the pair has now recovered nearly 200-pips from the 1.3700 neighborhood touched last week and a follow-through up-move, led by some additional short-covering, now looks a distinct possibility.

In absence of any major market moving economic releases, the pair is likely to be influenced by the New York Fed President William Dudley and the Bank of England (BOE) Chief Economist Andy Haldane's scheduled speeches. 

Technical levels to watch

The ongoing momentum seems strong enough to lift the pair further towards 1.3945 horizontal resistance en-route its next major hurdle near the 1.3985-90 region. On the flip side, mid-1.3800s (50-day SMA) now becomes an immediate support to defend, which if broken might drag the pair back towards the 1.3800 handle en-route 1.3765 strong horizontal support.