GBP/USD tumbles to fresh three-week lows, 1.32 mark back on sight

The GBP/USD pair maintained it’s offered tone through early NA session and has now dropped to fresh three-week lows, in the 1.3235-30 region.

The pair extended its recent corrective slide from yearly tops touched on Sept. 20 and traded in negative territory for the third consecutive session. 

Against the backdrop of Monday's weaker UK manufacturing PMI, today's UK data indicated a contraction in the UK construction activity and suggested that the economy could be losing momentum, which continued exerting some selling pressure around the British Pound.

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The pair's weaker tone could also be attributed to some cross driven weakness, led by a strong up-move witnessed around the EUR/GBP cross. 

Meanwhile, the latest comments from the UK trade Secretary Liam Fox, noting that the UK will have no choice but to walk away if no deal is made by March added to the uncertainty surrounding the ongoing Brexit talks and further collaborated to the pair's heavily offered tone. 

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Even a modest greenback retracement, with the key US Dollar Index correcting from 1-1/2 month highs, did little to lend any support and stall the pair's fall to its lowest level since Sept. 14.

Technical levels to watch

The 1.3200 handle now seems to act as immediate support, which if broken could accelerate the fall towards 1.3160-55 horizontal support. On the upside, any recovery move above mid-1.3200s might now confront strong resistance near the 1.3280 level, above which the pair is likely to surpass the 1.3300 handle and aim towards testing its next major hurdle near the 1.3325-30 region.