GBP/USD slammed below 1.3200, next in focus - PMI and BOE

Bears made a dramatic comeback on Tuesday, with the GBP/USD pair slammed back below 1.3200 handle to test mid-1.3100s level before retracing a bit to currently trade around 1.3175-80 band.

Market participants seem to have turned nervous on expectations that yesterday's disappointing UK construction PMI data could be the first signs of a Brexit-led economic fallout in UK as we head into the release of UK services PMI data for June. Yet another disappointing PMI reading would provide little respite for the GBP/USD pair. 

Investors will also look forward to the release of BoE's Financial Stability Report and BoE Governor Mark Carney's assessment, later during European session on Tuesday. Dovish outlook would attract additional selling pressure, turning the pair vulnerable to further downslide in the near-term.

Economic calendar from the US is relatively lighter, with the only release of Factory Orders, and hence, the GBP/USD pair would continue to derive its moves from the news / developments surrounding the historic Brexit referendum.

Technical levels to watch

From current levels, the pair seems to be headed back towards Brexit-led swing lows support around 1.3120 before heading towards breaking 1.3000 important psychological mark support and aim towards testing support around 1.2850 region marking 100% Fibonacci expansion level. On the flip side, any attempts of recovery might now confront immediate resistance near 1.3200 round figure mark, above which the recovery momentum could get extended towards 1.3350 level. This 1.3350 resistance now seems to cap any further recovery for the pair.