GBP/USD headed back to retest multi-week lows?

The GBP/USD failed to sustain its recovery back above 1.3000 and came under renewed selling pressure amid sudden reversal in risk sentiment.

Currently trading around 1.2950-60 band, off session low level of 1.2937, the pair moved within striking distance of a multi-week low level support near 1.2915 touched during the previous two session. Deutsche Bank worries seem to be weighing on investor sentiment and triggered a sharp reversal in European equities, pointing to reemergence of risk-off trade. 

Moreover, a sharp slide in oil prices negated market optimism led by win for Hillary Clinton over Donald Trump in the first US presidential debate. WTI crude oil traded lower by nearly 1.5% after Iran poured cold water on hopes for a production freeze agreement at this week's meeting in Algeria. 

Tuesday's US economic calendar features the release of CB Consumer Confidence index for September. Later during the day, Federal Reserve Vice Chairman Stanley Fischer will be scrutinized for fresh clues of the Fed's near-term monetary policy stance ahead of the Fed Chair Janet Yellen's testimony on Wednesday.

Technical levels to watch

Below session low, the pair might continue to find support near 1.2915 level, which if broken is likely to accelerate the slide towards August monthly lows support near 1.2870-65 region. Meanwhile on the upside, any recovery attempts might now confront strong resistance near 1.3000 psychological mark above which a fresh bout of short-covering could lift the pair immediately towards 1.3030 horizontal resistance and eventually towards 1.3065-70 resistance zone.