GBP/USD tumbles below 1.2300 handle ahead of UK services PMI

Having posted a session high near 1.2360 region, the GBP/USD pair ran through fresh offers and turned sharply lower, breaking below 1.2300 handle. 

Currently trading around 1.2285-90 band, testing session lows, the pair came under intense selling pressure as the US Dollar stalled less hawkish Fed minutes-led sell-off. In absence of any fresh news / development, the pair's latest leg of slide could be primarily attributed to resurgent greenback demand amid growing consensus over faster US economic growth led by aggressive fiscal policies by the incoming Trump administration. 

Moreover, bears might have been inclined to initiate fresh short positions as the pair once again failed to attract a follow through action above 1.2350 resistance and could have aggravated the pair's sharp slide in the past hour. 

Next in focus would be UK services PMI, which if adds to this week's upbeat manufacturing and construction PMI readings, might provide some immediate respite for the bulls. Later during NA session, US economic docket, featuring the release of ADP report on private sector employment and ISM non-manufacturing PMI, would be looked upon for reinforcement to market optimism surrounding the US economy and provide fresh impetus for the major during early NA session. 

However, Friday's official monthly jobs report (NFP) would still be the next important fundamental trigger that should help investors to determine the pair's near-term trajectory. 

Technical levels to watch

A follow through selling pressure is likely to drag the pair towards 1.2270-65 support below which the pair seems to accelerate the slide back towards 1.2225-20 support area. On the upside, momentum back above 1.2300 handle might now confront resistance near 1.2335-40 region, which if cleared sets the stage for a fresh attempt towards reclaiming 1.2400 handle.