GBP/USD struggling near 2-month lows, around 1.28 handle

The GBP/USD pair remained under some selling pressure for the second consecutive day and held weaker around the 1.2800 handle through the mid-European session.

The pair extended overnight slump below 1.2830 minor support and tumbled to the lowest level since June 27. The latest leg of slide lacked any fresh fundamental drivers and could be solely attributed to some technical selling, especially after yesterday's bearish break below a 4-day old trading range.

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It is worth reporting that the sentiment around the British Pound remains weak in wake of the recent dovish BoE tilt, reaffirming that the central bank would keep interest rates on hold in the near-future amid concerns over the economic impact from Brexit. 

   •  UK government’s Brexit position a little less opaque – ING

Meanwhile, the US Dollar struggled to extend overnight recovery gains and lost some ground on Wednesday, but did little to lend any immediate support or stall the pair's bearish slide to near two-month lows.

Today's US economic docket, featuring the release of flash manufacturing and services PMI, followed by new home sales data, would now be looked upon for some fresh trading impetus during the early NA session.

Technical levels to watch

From current levels, the downfall could get extended towards an intermediate support near mid-1.2700s before the pair eventually breaks below the 1.2700 handle and head towards testing its next support near the 1.2685-80 region. 

On the flip side, any recovery attempts now seem to confront fresh supply near 1.2830 support break point, which if cleared might trigger a short-covering rally towards 100-day SMA hurdle near the 1.2880 region.