GBP/USD keeps the red below 1.3170 post-US housing market data

The GBP/USD pair held weaker through early NA session and had a rather muted reaction to the US housing market data. 

The pair stalled its post-UK jobs data tepid recovery move just ahead of the 1.3200 handle and was being weighed down by the latest comments from the UK PM Theresa May, saying that a rejection of a no deal scenario means accepting any Brexit deal that might hurt economy. 

   •  UK PM May: no deal on Brexit preferable to a bad deal

Meanwhile, data released from the US showed both building permits and housing starts contracted more than expected during the month of September but did little to dent the prevalent strong bullish sentiment around the US Dollar. 

   •  US: Housing starts in Sept were at 1,127,000, 4.7% below August estimate of 1,183,000

With bulls unimpressed by today's slightly better-than-expected UK wage growth data, the pair seems more likely to extend its downslide amid persistent greenback buying interest and Brexit uncertainty. 

   •  UK PM May Spokesman: Govt never confirmed date for Brexit bill to be put before Parliament

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The 61.8% retracement of the latest bullish run stands at 1.3145, the immediate support and the level to break to confirm a steeper decline, first towards 1.3100 and later towards 1.3060."

"Given that quick retracement from the mentioned high, right below a Fibonacci resistance at 1.3220, this  last is the level to recover to see the pair gaining upward traction, although the next line of selling interest will probably reject advances near 1.3260" she added further.