GBP/USD slide to over two-week lows ahead of US ISM

The British Pound extended dismal UK PMI-led downslide, with the GBP/USD pair dropping to its lowest level since Sept. 14 and bulls struggling to defend the 1.3300 handle. 

The British Pound weakened across the board following today's below forecast UK manufacturing PMI, which showed that the UK manufacturing sector continued to expand in September but at a slower pace. 

   •  Dip in UK manufacturing sentiment unlikely to halt November hike - ING

Meanwhile, the US Dollar stood tall at the beginning of a new trading week and further collaborated to the pair's rejection slide from the 1.34 handle touched earlier during Asian session. 

Growing prospects for an additional Fed rate hike move by the end of this year, coupled with renewed optimism over the US President Donald Trump's tax reform proposal continued underpinning the greenback demand and collaborated to the pair's slide to over two-week lows. 

   •  GBP futures: decline stays unabated

Next in focus would be the US economic docket, featuring the release of ISM manufacturing PMI, which if surprises positively should provide an additional boost to the buck and open room for extension of the pair's corrective slide from yearly tops, touched on Sept. 20.

   •  US: ISM manufacturing likely to post a slight decline from 58.8 to 58.2 - TDS

Technical levels to watch

Immediate support is pegged near 1.3280 level, below which the pair is likely to accelerate the fall towards 1.3225-20 horizontal support ahead of the 1.3200 handle. 

On the upside, any recovery attempts might now confront immediate resistance near 1.3340 level, above which the pair is likely to make a fresh attempt towards reclaiming the 1.3400 handle.