GBP/USD well offered below 1.2900 handle ahead of US ISM

The GBP/USD pair maintained it’s offered tone and has now reversed part of upbeat PMI-led tepid recovery bounce to 1.2900 handle. 

Currently trading around 1.2870-75 band, the pair rebounded from three-month lows after UK manufacturing PMI for September surpassed expectations and surprisingly rose to 55.4 from 53.3 recorded in the previous month. Surprisingly stronger PMI details provided a much needed respite for the British Pound, which was heavily offered on renewed Brexit uncertainty following UK Prime Minister Theresa May's comments over the timing of triggering Article 50 that would officially kick-start the process of ending UK's membership with the European Union.

Next in focus would be the release of US ISM manufacturing PMI, which after an unexpected contraction in August is anticipated to rebound back in to expansion territory and come-in at 50.3 for September.

Technical levels to watch

A follow through selling pressure below session low support near 1.2845 level is likely to accelerate the slide further towards 1.2800 round figure mark intermediate support below which the pair the downslide could further get extended towards a short-term descending trend-channel support near 1.2750 region. 

On the flip side, any recovery attempts now seems to confront strong resistance near 1.2900 handle, which if cleared is likely to assist the pair back towards 1.2975 resistance area. Any subsequent recovery might now be capped at 1.3000 psychological mark.