GBP/USD slips below mid-1.3200s and rebounds, Brexit meeting awaited

The GBP/USD pair finally broke down of its European session consolidation phase and dropped to fresh session lows, in the region of mid-1.3200s.

A beat in Empire state manufacturing index lifted the US Dollar higher across the board and has been one of the key factors behind the pair's sharp pull-back of around 50-pips during early NA session.

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Adding to this, a Bloomberg report, noting the Brexit negotiations could be headed for a catastrophic breakdown if the EU refuses to compromise, was also seen weighing on the British Pound and further collaborated to slide over the past hour or so.

The selling pressure, however, seems to have abated, for the time being, with the pair recovering nearly 30-pips from lows as investors seemed reluctant to place aggressive bets and preferred to wait on the sideline ahead of today's emergency Brexit meeting. 

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With the only scheduled US data out of the way, focus would remain on any fresh news/developments coming out of the UK PM Theresa May and Brexit Secretary David Davis' surprise meeting with the EU commission chief, Jean-Claude Juncker, and the EU’s top Brexit negotiator, Michel Barnier. 

Technical levels to watch

A convincing break below 1.3250-45 area is likely to accelerate the fall towards the 1.3200 handle en-route its next support near the 1.3175 level and the 1.3130-20 region. 

On the upside, sustained momentum beyond the 1.3300 handle is likely to find fresh supply near the 1.3340 level, above which the pair is likely to dart towards pair the 1.3400 handle en-route 1.3415-20 area.