GBP/USD plummets to fresh two-week lows, nearing mid-1.3800s

   •  Resurgent USD demand prompts aggressive selling.
   •  Technical factors add to the downward pressure. 

The GBP/USD pair extended its rejection slide from the 1.40 handle and tumbled to fresh two-week lows, below the 1.3900 handle.

Against the backdrop of recent softer UK economic data, a sudden pickup in the US Dollar demand, as a safe haven in times of market turbulence, prompted some aggressive selling from an important psychological barrier. 

The selling pressure aggravated further once the pair broke below Asian session lows support near the 1.3940-35 region. Hence, possibilities of some short-term trading stops being triggered, below the mentioned support, could also be one of the factors behind the pair's sharp fall over the past few hours.

With today's sharp fall, the pair has now retreated nearly 400-pips over the past three trading session and remains vulnerable to extend the downfall amid the ongoing rout in global equity markets.

Today's US economic docket, featuring the release of JOLTS job openings data, is unlikely to provide any meaningful impetus as investors now turn their focus to BOE's Super Thursday.

Technical levels to watch

Immediate support is pegged near mid-1.3800s, below which the corrective slide could further get extended towards the 1.3800-1.3790 support area. On the upside, any recovery attempts might now confront fresh supply near the 1.3900 handle, which if cleared might trigger a short-covering bounce back towards the 1.3935-40 region.