GBP/USD slips below 1.3100 handle

The GBP/USD pair reversed its early tepid bounce to session high at 1.3139 and has now slipped below 1.3100 handle to trade with negative bias for third consecutive session.

The greenback extended its overnight strength on increasing Fed rate-hike bets after hawkish comments from various Fed officials, including that from the Fed Chair Janet Yellen's speech at Jackson Hole symposium. 

Today's UK bank holiday, in observance of the Summer Bank Holiday, is likely to keep trading activity light during European session, leaving the pair at the mercy of broader sentiment surrounding the US Dollar.

Later during NA trading session, US releases that include - Core PCE Price Index, personal income and spending data, might provide opportunity for short-term momentum play. However, this week's key focus would be on one of the most keenly watched economic indicator from the US, monthly jobs report, popularly known as NFP.

Technical levels to watch

On a sustained weakness below 1.3100 handle, the pair is likely to immediately drift to 1.3040 horizontal support, which if broken decisively seems to turn the pair vulnerable to head back towards retesting a strong support around 1.2900 region.

Meanwhile on the upside, recovery momentum above session high now seems to confront resistance around 1.3190-1.3200 area above which the pair seems to make a fresh attempt to head back towards three week high resistance near 1.3275-80 zone.