• The GBP/USD eased slightly against the U.S. dollar on Thursday as investors digested the latest UK business activity data.
• The figures offered mixed signals on the health of the economy, prompting a cautious response from traders amid broader market uncertainty.
•The S&P Global UK Composite Purchasing Managers' Index (PMI), a gauge of the private sector economy, rose to 49.4 from 48.5 in April, roughly as expected by economists
• The UK manufacturing PMI fell to 45.1 from 45.4 and the jobs index for the sector sank to its lowest level since the onset of the COVID-19 pandemic.
• The UK services PMI rose to 50.2 in May, up from 49.0 in the previous month, signaling a modest return to expansion.
• Immediate resistance is located at 1.3457( 23.6%fib), any close above will push the pair towards 1.3489( Higher BB)
• Strong support is seen at 1.3339 (May 20th low) and break below could take the pair towards 1.3259(38.2%fib).
Recommendation: Good to buy around 1.3390, with stop loss of 1.3300 and target price of 1.3460.
