GBP/USD clings to gain, above mid-1.4000s ahead of US ISM

   •  Renewed trade war fears prompt some fresh USD selling.
   •  The pair continues to find buying interest near the 1.40 handle.
   •  Traders now eye US ISM PMI for some fresh impetus.

The GBP/USD pair held on to its strong gains and now seems to have entered a bullish consolidation phase just above mid-1.4000s. 

A fresh wave of US Dollar selling pressure, led by renewed concerns over a possible US-China trade war, helped the pair continue defending the key 1.40 psychological mark and catch some fresh bids at the start of a new week. 

Further gains, however, remained capped on the back of a goodish pickup in the US Treasury bond yields, with the pair now seemed struggling to build on the up-move further beyond the 1.4070 immediate resistance. 

Even from a technical perspective, the pair last week had confirmed a bearish break below a short-term ascending trend-channel and hence, any subsequent up-move could turn out to be short-lived. 

Traders now look forward to a slew of important macroeconomic releases, due at the start of a new month, for some fresh directional impetus. A busy week of economic data kicks off with the release of US ISM manufacturing PMI, which might assist traders to grab some short-term trading opportunities during the early NA session. 

Technical levels to watch

From current levels, the 1.4100 handle is likely to act as an immediate resistance and is followed by the ascending trend-channel support break point, now turned resistance, near the 1.4120 region. 

On the flip side, any meaningful retracement might continue to find some support near the 1.40 handle, below which the pair is likely to turn vulnerable to slide further towards testing 1.3965-60 support area.