GBP/USD keeps the red near mid-1.3200s, Fedspeak eyed

   •  Brexit concerns/fading BoE rate hike prospects keep the GBP bulls on the back-foot.
   •  Subdued USD price action, amid US-China trade tensions, helps limit deeper losses. 

The GBP/USD pair held on to its weaker tone through the mid-European session, albeit has managed to bounce around 25-pips from session lows.

After Friday's modest recovery attempt, the pair came under some renewed selling pressure at the start of a new trading week and dropped to an intraday low level of 1.3226. Reemerging hard Brexit concerns and fading prospects for an eventual BoE rate hike move were seen as key factors weighing on the British Pound. 

However, a subdued US Dollar price action, led by escalating US-China trade tensions and a weaker tone around the US Treasury bond yields helped limit deeper losses, with the pair once again finding some buying interest ahead of the 1.3200 round figure mark. 

In absence of any major market moving economic releases, any incoming Brexit headline and speeches by influential FOMC members - Atlanta Fed President Raphael Bostic and San Francisco Fed President John Williams, might produce some short-term trading opportunities.

The key focus, however, would be on the latest BoE June monetary policy decision on Thursday, where the central bank is widely expected to maintain status quo and hence, the vote count would become more relevant in determining the pair's next leg of directional move.

Technical levels to watch

The 1.3210-1.3200 region might continue to protect the immediate downside, which if broken is likely to accelerate the fall towards 1.3135 horizontal support. On the flip side, the 1.3280-1.3300 region now seems to have emerged as an immediate strong hurdle, above which a bout of short-covering could lift the pair towards its next resistance near mid-1.3300s.