GBP/USD tumbles to fresh 3-week lows, farther below 1.32 mark

The British Pound remained heavily offered across the board, now dragging the GBP/USD pair farther below the 1.3200 handle to fresh three-week lows.

Against the backdrop of prevailing Brexit concerns, the latest UK political landscape dented the sentiment surrounding the British Pound. Even lack of any strong follow through US Dollar buying interest has failed to lend any support, with the pair now reversing all of its gains recorded post-hawkish BoE announcement on September 14. 

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The pair's sharp fall since early European session could also be attributed to some cross driven weakness, with the EUR/GBP cross taking out some big stops near the 0.8900 handle and the GBP/JPY cross plunging to 3-week lows. 

The price action now confirms that yesterday's rebound to the 1.3280-1.3300 region, led by upbeat UK services PMI was utilized as an opportunity to initiate fresh short positions. Hence, possibilities of some additional technical selling, on a sustained break below 1.3230-20 support area, could have also collaborated towards accelerating the pair's downfall on Thursday.

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Focus now shifts to the US economic docket, featuring the release of initial jobless claims, trade balance and factory orders data. Also in focus would be speeches by various FOMC members, namely - the Fed Governor Jerome Powell, San Francisco Fed President John Williams, Philadelphia Fed President Patrick Harker and Kansas City Fed President Esther George.

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Technical levels to watch

A follow through selling pressure has the potential to continue dragging the pair towards 1.3160 intermediate level ahead of 50-day SMA support near the 1.3135 region and an important support near 1.3110 area.

On the upside, any recovery attempts back above the 1.3200 handle now seems to confront fresh supply near the 1.3225-30 region, above which a bout of short-covering could lift the pair back towards 1.3270-80 hurdle en-route the 1.3300 handle.