GBP/USD turns sharply lower, drops to 1.3000 neighborhood

The GBP/USD pair ran through fresh offers at session high near 1.3065, erasing all of its early gains and turn into negative territory. 

Currently trading at a fresh session low level of 1.3010, the pair has failed to benefit from a broadly weaker sentiment surrounding the greenback, which continues to be weighed down on increasing possibilities of Fed inaction on Wednesday. 

With no major market moving economic releases scheduled for release from UK, the current retracement suggests that the near-term selling pressure is likely to continue and the pair remains vulnerable to drift lower.

Later during NA trading session, housing starts and building permits data from the US might provide some impetus. Meanwhile, key focus would remain on Wednesday's central bank announcements, starting with BOJ during Asian session and Fed decision later during NY trading session. 

Technical levels to watch

From current levels, 1.3000 psychological mark remains immediate support to watch for, which if broken decisively would attract fresh selling interest and drag the pair further towards 1.2915 support area. On the flip side, recovery above 1.3030, leading to a subsequent move above session high resistance near 1.3060-65 region, should assist the pair towards reclaiming 1.3100 handle.