• GBP/USD slipped below the 1.3500 mark on Friday after worse-than-expected UK borrowing data weighed on the pound.
• Official data on Friday showed UK public sector borrowing from April to August reached £83.8 billion ($113.39 billion), exceeding the Office for Budget Responsibility’s earlier forecast by £11.4 billion.
• Borrowing was the highest for the first five months of a financial year since 2020, when the government ramped up spending to support the economy during the coronavirus pandemic.
• Meanwhile, separate data showed UK retail sales rose more than expected in August, boosted by sunny weather, though July’s growth was revised lower..
•. At GMT 11:22, the pound was down 0.47% to 1.3491 against the US dollar.
• Immediate resistance is located at 1.3521(SMA 20), any close above will push the pair towards 1.3591(38.2%fib)
• Strong support is seen at 1.3428 (50%fib) and break below could take the pair towards 1.3365(Lower B).
Recommendation: Good to sell around 1.3500 with stop loss of 1.3560 and target price of 1.3430
