GBP/USD tumbles to lows, below 1.32 handle

The GBP/USD pair came under some intense selling pressure and tumbled to sub-1.3200 level in absence of any fresh BOE hawkish tones. 

The pair reversed UK CPI-led modest uptick to session high level of 1.3287 and drifted into negative territory for the second consecutive session, even as the BoE Governor Mark Carney reaffirmed a rate hike in coming months may be appropriate. Bulls, however, seemed disappointed by the fact that there was nothing too hawkish from Carney. 

   •  BOE’s Carney: BOE rate hike in coming months may be appropriate

Meanwhile, a strong follow through greenback buying interest, with the key US Dollar Index placed at 7-day tops, further aggravated the selling pressure and collaborated to the pair's sharp slide to a 3-day low, near the 1.3190 region.

Next on tap would be the US economic docket, featuring the release of import/export price index and industrial production data, which along with Fedspeak would now be looked upon for some fresh impetus. 

Technical levels to watch

Immediate support is pegged near 1.3175 area, below which the pair is likely to accelerate the fall towards 1.3125-20 intermediate support ahead of the 1.3100 handle.

On the upside, any up-move now seems to confront fresh supply near mid-1.3200s and is followed by a strong hurdle near the 1.3300 handle. Only a convincing break through the mentioned hurdle would negate any near-term bearish bias.