FxWirePro: GBP/USD advances as greenback weakens on dismal data

• GBP/USD strengthened on Thursday as  U.S. dollar softened amid a string of disappointing U.S. economic data.

•.The ISM Services PMI for May unexpectedly slipped into contraction territory, falling to 49.9 versus a consensus forecast of 52.0, marking the first reading below 50 in nearly a year.  

• Additionally, the ADP National Employment report showed private payrolls rose by just +37,000 in May, significantly below the expected +110,000, raising fresh concerns about the strength of the labor market.

• The weak data reinforced expectations of a Federal Reserve rate cut later this year, aligning with renewed pressure from former President Donald Trump, who continues to urge the Fed to ease monetary policy.

•   Immediate resistance is located at 1.3601(23.6%fib), any close above will push the pair towards 1.3653( Higher BB)

•  Strong support is seen at 1.3507(June 4th low) and break below could take the pair towards 1.3403(38.2%  fib).

  Recommendation: Good to buy around 1.3550 with stop loss of 1.3430 and target price of 1.3680.