GBP/USD slumps to 1.3170 as post-Fed correction extends

The pound extends its weakness versus the US dollar into early Europe, drowning GBP/USD to fresh session lows further below 1.32 handle.

GBP/USD sell-off triggered below 1.3220 – key support

Currently, GBP/USD drops -0.40% to fresh session lows of 1.3171, staging a sharp reversal from above 1.32 handle. The GBP/USD pair ran through heavy offers on a breach of a key support located near 1.3220 zone, and eroded almost 50-pips thereon, largely on the back of extension of the correction post-FOMC highs reached at 1.3249 earlier on the day.

Meanwhile, no major fundamental catalyst is seen behind the downfall, while traders may have thought any rally above 1.32 handle is a good selling opportunity. Next of relevance for the major remains the US unemployment data, in absence no macro releases from the UK docket today.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3249 (daily top), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3150 (psychological levels) below that at 1.3133 (20-DMA).