GBP/USD eases from 6-day tops, back below mid-1.4000s

   •  A modest USD rebound prompts some profit-taking slide.
   •  Dovish remarks by Fed’s Bullard help limit further retracement. 

The GBP/USD pair trimmed some of its early strong gains and retreated over 30-40 pips from 6-day tops. 

The pair was seen building on last week's sharp rebound from Thursday's intraday low level of 1.3857 and was being supported by the BOE Deputy Governor Dave Ramsden's hawkish comments by over the weekend. 

Adding to this, a fresh wave of US Dollar selling pressure, led by falling US Treasury bond yields, provided an additional boost and lifted the pair to an intraday high level of 1.4070. 

Bulls, however, struggled to maintain their dominant position and were inclined to take some profits off the table from a short-term descending trend-line resistance and especially after the pair's strong upsurge of over 200-pips since last Thursday.

Currently trading around the 1.4040 region, the pair, however, caught some fresh bids following some dovish remarks by St. Louis Fed President James Bullard, saying that rate guidance from here should outline a relatively flat policy path. 

Moving ahead traders now look forward to the release of new home sales data for some short-term trading opportunities. Later in the day, comments by the BOE Deputy Governor Jon Cunliffe and the Fed Governor Randal Quarles might also influence the pair's momentum ahead of the Fed Chair Jerome Powell's first congressional testimony on Tuesday. 

Technical levels to watch

Any subsequent retracement is likely to find support near the key 1.40 psychological mark, below which the pair could head back towards retesting 1.3960-40 strong horizontal support. On the upside, bulls would be eyeing for a clear breakthrough 1.4070 resistance, which if cleared has the potential to lift the pair beyond the 1.4100 handle towards its next major hurdle near the 1.4135-40 region.