GBP/USD surrenders daily gains, around mid-1.4100s ahead of ADP report

   •  Negative Brexit news prompts some fresh selling.
   •  USD bearish pressure eases ahead of FOMC.
   •  ADP report might provide some trading impetus.

The GBP/USD pair surrendered early strong gains to fresh weekly tops and refreshed session lows in the past hour, albeit quickly recovered few pips thereafter. 

The pair extended its retracement slide from levels beyond the 1.4200 handle and dropped to an intraday low level of 1.4122 on reports that EU officials have rejected the City of London’s proposal for a free trade deal on financial services. 

The price action now seems to indicate increasing vulnerability of the British Pound to any negative Brexit-related news, particularly against the backdrop of the UK PM Theresa May's deeply divided cabinet ahead of the forthcoming trade talks.

However, the prevailing US Dollar bearish pressure, albeit seems to have abated for the moment, helped limit any deeper losses as investors keenly await the outcome of a highly anticipaed FOMC meeting.

In the meantime, ADP report on the US private sector employment might help traders to grab some short-term trading opportunities during the early NA session. 

Technical outlook

On a sustained weakness below the 1.4100 handle, the pair is likely to accelerate the fall towards testing 1.4065 horizontal support before eventually dropping back towards the key 1.40 psychological mark. 

Alternatively, a clear break through the 1.4200 mark could trigger a rally even beyond 1.4235-40 intermediate supply zone towards reclaiming the 1.4300 handle.