GBP/USD weakens further below 1.3200 handle
| • Confronts fresh supply near 1.3230 area
• Surging US bond yields weigh
• UK GDP in focus
The GBP/USD pair once again met with some fresh supply near the 1.3230 region and retreated over 60-pips from session tops.
Rising US bond yields underpin USD demand
Currently trading around 1.3180-75 area, just a few pips off daily lows touched in the past hour, the pair's fall since early European session lacked any fresh fundamental driver and could be solely attributed to renewed US Dollar demand.
A goodish pickup in the US Treasury bond yields seems to have triggered a fresh bout of greenback buying interest and has been one of the key factors weighing on the major.
Further downside, however, seemed limited amid anxiousness over the appointment of the next Fed Chair, which now seems hold investors back from placing aggressive bullish USD bets.
Wednesday's UK GDP numbers hold the key
Looking at the broader picture, the pair has been oscillating within a familiar trading range over the past one-week as investors look forward to Wednesday's release of Q3 GDP figures from the UK before positioning for near-term direction.
• GBP futures: consolidative near term
In the meantime, the preliminary US Markit manufacturing PMI, due later today and expected to tick higher to 53.6 (from 53.1) in October, might provide some short-term trading impetus.
Technical levels to watch
A follow-through selling pressure could drag the pair towards 1.3150 horizontal support en-route the 1.3100 handle and 100-day SMA support near mid-1.3000s.
On the flip side, momentum back above the 1.3200 handle might continue to confront fresh supply near the 1.3225-30 region, above which a bout of short-covering could lift the pair towards 1.3270-75 intermediate resistance ahead of the 1.3300 handle.
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