GBP/USD slides below 1.3300 handle

Having posted a session high at 1.3375, the GBP/USD pair extended its corrective move and has now dropped below 1.3300 handle to currently trade at a fresh session low level around 1.3290 region.

The greenback found some buying interest after Thursday's release of weekly jobless claims data reaffirmed the underlying strength in the US labor market and provided a much needed respite for the US Dollar bulls. 

US weekly jobless claims unexpectedly dropped by 4,000 to a two-month low of 259k during the week ended on September 3 as against consensus estimates pointing to a rise to 265k from previous week's 263k. 

Meanwhile, a short-covering rally witness around the EUR/GBP cross, after ECB left its monetary policy unchanged, also seems to contribute to the downside pressure in cable. 

Focus now shifts to Friday's economic releases from the UK, which includes - Goods Trade Balance, Construction Output and Consumer Inflation Expectations. 

Technical levels to watch

On a sustained weakness below 1.3300 handle, the pair is likely to continue drifting towards 1.3250 intermediate support before eventually dropping to a short-term ascending trend-channel support near 1.3200-1.3180 region.

Meanwhile on the upside, 1.3300-1.3320 region now becomes immediate resistance, which is followed by session high resistance near 1.3375 level. A follow through buying interest above 1.3375 should now assist the pair to break through 1.3400 handle and head towards testing the ascending trend-channel resistance near 1.3450 region.