GBP/USD plunges to a fresh multi-decade lows

The GBP/USD pair remained under intense selling pressure and is now extending its slide further below 1.2800 handle.

Currently trading at a fresh multi-decade lows around 1.2770-65 region, the pair failed to extend its recovery move witnessed during early Asian session on Tuesday and turned sharply lower during early European session. The British Pound continues to lose ground across the board amid renewed Brexit concerns after comments from UK Prime Minister Theresa May, over the weekend, increased the likelihood of a 'hard Brexit'.

Moreover, possibilities of stops getting trigger below 1.2800 handle could have further aggravated the slide. 

Meanwhile, the greenback extended its overnight gains, led by a strong rebound in the US manufacturing activity, and is exerting additional selling pressure around the major. Following an unexpected decline in August, the US ISM manufacturing PMI jumped back above 50.00 mark to 51.5 in September. 

Technical levels to watch

The ongoing momentum seems strong enough to continue dragging the pair further towards a short-term descending trend-channel support near 1.2725. However, with near-term oversold conditions, the pair might witness a bounce back towards 1.2800 handle. Any subsequent recovery above 1.2800 handle might now confront strong resistance near 1.2840-45 region.