GBP/USD sits at 2-week lows, flirting with 1.30 handle ahead of US ISM PMI

   •  Brexit uncertainties continue to dent sentiment surrounding the British Pound.
   •  Today’s disappointing release of UK Services PMI adds to the selling pressure.
   •  A follow-through USD uptick exerts additional pressure ahead of US ISM PMI.

The GBP/USD pair held on to the disappointing UK data-led weakness and threatened a fall below the 1.30 round figure mark for the first time in two-weeks.

After an initial uptick to an intraday high level of 1.3052, the pair met with some fresh supply and drifted into negative territory following the disappointing release of UK services PMI.

Against the backdrop of the stalemate situation over the Irish backstop, a series of weak PMI prints reaffirmed the effects of Brexit uncertainties on businesses and took its toll on the British Pound.

As Mario Blascak, FXStreet's own European Chief Analyst explains, “the economic fundamentals are reflecting the Brexit uncertainty in a lower reading for the measures of the economic activity.”

Meanwhile, the US Dollar build on its recent gains led by mostly upbeat US economic data last week, recovering all of its dovish FOMC-led losses, and exerted some additional downward pressure on the major.

It would now be interesting to see if bears are able to take out the 1.30 handle or some repositioning trade, ahead of the upcoming BoE Super Thursday, helps the pair defend the key psychological mark support.

In the meantime, today's release of the US ISM non-manufacturing PMI, a key highlight from today's relatively thin US economic docket, will be looked upon for some impetus during the early North-American session.

Technical outlook

Mario further added: “The technical oscillators like the Relative Strength Index (RSI) and Slow Stochastics (SS) are both pointing lower with Slow Stochastics making a bearish crossover in the Overbought territory indicating future price declines.”