GBP/USD breaks below 1.2900 handle

The GBP/USD pair erased all of its tepid recovery bounce to 1.2945 region and resumed its downward trajectory to break below 1.2900 handle for the first time since the historic Brexit referendum.

News over the weekend of a possible delay to invoke Article 50, and begin the process to leave the European Union, added on to the uncertainty surrounding Brexit and is weighing heavily on the British Pound. 

With only a brief pause last week on Wednesday, the pair traded lower for ninth session in the previous ten and is building on to its two consecutive weeks of losses. 

Next on tap would be the release of Empire State Manufacturing Index from the US, which could provide some respite to the greenback and exert further selling pressure around the GBP/USD major.

Technical levels to watch

From current levels the pair remains vulnerable to continue drifting lower towards a very important support near 1.2850 region. Meanwhile, any recovery attempt above 1.2900 handle might now confront resistance around 1.2945 (session high), above which the recovery could get extended but is likely to be capped around 1.3000 psychological mark.