GBP/USD remains chained to 1.3000 as Brexit continues to hang above with US PMIs in the barrel

• Wednesday sees the Pound teetering on the edge of further losses if bidders can't keep the wheels on amidst Brexit headlines that point south.
• A heavier showing on the docket for the following US session will see market sentiment clash with reporting figures in the day ahead.

The GBP/USD is trading near 1.3000 ahead of Wednesday's London market session after a whippy Tuesday that saw the Cable peak at 1.3044 before bedding back down after premature hopes on Brexit headlines once more gave way to discouragement amidst broader risk-off market sentiment.

The European Union offered UK Prime Minister Theresa May an Irish border workaround on Tuesday, involving an entirely separate agreement to Brexit, involving a broad-UK customs union in order to circumvent the current Irish border backstop, but the offer falls far short of PM May's current demands, who is seeking a total workaround that will be included in the final Brexit agreement. Markets saw a brief spark of hope on the news, but reality once more crashed in for a landing, taking the Cable back down below 1.3000 to finish up Tuesday.

Wednesday sees a thin showing for the UK on the economic calendar, with only the low-tier September Mortgage Approvals slated for 08:30 GMT, but the following US session sees a bit more for Greenback traders to chew on, with the US Housing Price Index at 13:00 GMT (forecast 0.3%, last 0.2%), following by the US' Markit Manufacturing, Services, and Composite PMIs all dropping at 13:45 GMT, with the preliminary September Composite last showing at 53.9, while the Manufacturing (forecast 55.5, last 55.6) and Services (forecast 54.0, last 53.5) PMIs are expected to mix on their results, but largely hold steady.

GBP/USD levels to watch

The Cable could be setting up for further downside as bulls continue to stumble out of the gate, according to FXStreet's own Valeria Bednarik: "the GBP/USD pair settled below the 1.3000 figure after hitting a fresh weekly low of 1.2936, with the bearish case supported by the unsolved Brexit negotiations. Technical readings in the 4 hours chart support a downward extension, as the price is currently developing below a firmly bearish 20 SMA, which extends its slump below the 200 EMA, as technical indicators remain within negative ground, although with no certain directional strength. The main bearish target for the upcoming sessions continues being 1.2880, the 61.8% retracement of the 2016/18 rally."

Support levels: 1.2955 1.2920 1.2880

Resistance levels: 1.3000 1.3040 1.3085