FxWirePro: GBP/USD drops below 1.3500 as UK borrowing shoots higher

• 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