GBP/USD tumbles to lows, around 1.3220 ahead of BoE

   •  Early uptick rejected at the 1.3300 handle. 
   •  Upbeat UK construction PMI fails to lend support.
   •  BoE decision and inflation report in focus.

The GBP/USD pair faced rejection at the 1.3300 handle and has now drifted into negative territory for the second consecutive session.

The pair reversed early gains and resumed with its previous session's corrective slide from near 3-week tops, despite today's upbeat UK data. In fact, the UK construction PMI returned to expansion territory and came in at 50.8 points for October, surpassing expectations for a reading of 48.0 and better-than 48.1 recorded in September. 

The pair's sharp slide since the early European session lacked any fundamental catalyst and could be solely attributed to some repositioning trade ahead of the highly anticipated BoE decision, due to be announced in a short while from now.

With a 25-bps rate hike nearly priced in the market, investors seemed inclined to lighten their bullish bets in anticipation of any fresh dovish signal from the accompanying quarterly inflation report and meeting minutes. 

   •  GBP futures: deeper pullback not ruled out

From the US, attention remains on the US President Donald Trump's announcement of the next Fed Chair and introduction of the tax-cut legislation. In the meantime, the usual weekly jobless claims and speeches by FOMC members would be looked upon for some short-term trading opportunities.

Technical levels to watch

A follow through weakness below the 1.3200 handle is likely to accelerate the fall towards 1.3175-70 intermediate support before the pair eventually darts towards testing the 1.3100 round figure mark.

On the upside, any up-move might now confront fresh supply near the 1.3260-65 region, which if cleared could assist the pair to make a fresh attempt towards reclaiming the 1.3300 handle.