GBP/USD surges back above 1.42 handle, highest since early Feb.

   •  Fresh USD selling helps break out of Asian session consolidation phase.
   •  Brexit optimism/hawkish BoE remain supportive of the strong up-move.
   •  Bullish momentum might now get extended towards the 1.43 handle.

The GBP/USD pair finally broke out of its Asian session consolidation phase and surged back above the 1.4200 handle to its highest level since early Feb. 

Despite easing fears about a full-blown US-China trade, the US Dollar selling remains unabated and was seen as one of the key factors helping the pair to build on Friday's up-move from the 1.4085-75 horizontal support area. 

Meanwhile, the recent positive news about the Brexit transition deal, followed by a hawkish BoE vote continued underpinning the British Pound and remained supportive of the pair's strong up-move. 

The latest leg of upsurge over the past couple of hours could also be attributed to some short-covering, following a decisive breakthrough 1.4170-80 supply zone. A follow-through up-move, supported by some fresh technical buying, would confirm a fresh bullish break and pave the way for an extension of the pair's upward trajectory.

There aren't any major market-moving economic releases due and hence, the USD price dynamics should continue to act as an exclusive driver of the pair's momentum on Monday. Later during the NY session, speeches from various FOMC members would now be looked upon for some fresh short-term trading opportunities. 

Technical levels to watch

The momentum seems strong enough to lift the pair towards the 1.4260 intermediate resistance en-route the 1.4300 handle. On the flip side, any meaningful retracement below the 1.4200 mark now seems to find fresh buying interest near the 1.4135 level and any subsequent fall now seems limited near the 1.4100 handle.