GBP/USD jumps to near 2-week tops, now eyeing 1.4200 mark

   •  USD fails to preserve early gains amid persistent US-China trade worries.
   •  A follow-through technical buying remains supportive of the momentum.
   •  Traders now US PPI figures for some immediate USD respite.

The GBP/USD pair finally broke out of its Asian session consolidation phase and spiked back above mid-1.4100s, near two-week tops. 

The US Dollar failed to preserve early gains and was seen as one of the key factors behind the pair's latest leg of bullish move over the past hour or so. A Bloomberg report, saying that the US-China trade talks have stalled over high-tech industry, capped the initial USD uptick and provided a minor boost to the pair during the early European session. 

Today's positive momentum could also be attributed to a follow-through technical buying, especially after yesterday's bullish breakthrough the 1.4100 handle and a subsequent move beyond the 1.4120 supply zone. 

Adding to this, some cross-driven strength, stemming out of the ongoing upsurge in the GBP/JPY and depreciating move in the EUR/GBP, remained supportive of the pair's strong up-move for the third consecutive session.

The pair has now rebound over 200-pips from near 3-week lows touched last Thursday and the momentum seems strong enough to support additional gains towards reclaiming the 1.4200 handle. 

Moving ahead, today's US economic docket, featuring the release of PPI print, would now be looked upon for some immediate respite for the USD bulls ahead of Wednesday's consumer inflation figures and the latest FOMC meeting minutes.

Technical levels to watch

Bulls would be eyeing for a decisive break through the 1.4200 handle, above which the pair could head towards testing 1.4230 supply zone before eventually darting towards the 1.4300 round figure mark.

On the flip side, 1.4135 level now becomes an immediate support to defend, which if broken might prompt some fresh selling and drag the pair back towards challenging the 1.4100 handle.