FxWirePro: GBP/USD bears take control following weak UK GDP data

• GBP/USD slipped lower on Friday as weaker-than-expected GDP data weighed on sterling

• UK GDP contracted for a second month in May, as industrial and construction declines offset services growth, complicating Rachel Reeves’ economic agenda.

• UK Gross domestic product declined by 0.1% after a 0.3% drop in April, the Office for National Statistics said.

• The latest GDP reading raises downside risks to projections of economic growth in the second quarter of 2025, following a strong start to the year.

• Traders are increasingly confident that the Bank of England will cut interest rates at its August policy meeting, with market pricing now reflecting a 78.6% probability of a rate cut.

•   Immediate resistance is located at 1.3535(SMA 14), any close above will push the pair towards 1.3781(23.6%fib)

•  Strong support is seen at 1.3547(38.2%fib) and break below could take the pair towards 1.3358(50%fib).

  Recommendation: Good to sell around 1.3550 with stop loss of 1.3640 and target price of 1.3450