• GBP/USD extened decline on Friday as soft UK economic data continued to weigh on pound.
• British retail sales rebounded in June following a sharp decline in May, but still came in slightly below analysts' expectations, according to data released Friday..
•Retail sales volumes rose 0.9% month-on-month in June, partially recovering from May’s sharp 2.8% decline the steepest drop since December 2023.
• This followed Thursday’s reports showing only modest growth in business activity for July and the steepest job cuts in five months.
• Markets are currently pricing in an 87.9% probability of a 25-basis-point interest rate cut by the Bank of England at its next meeting.
•Meanwhile, investors are closely watching to see if the European Union can strike a trade deal with the U.S. ahead of President Donald Trump's August 1 deadline
• Immediate resistance is located at 1.3549(SMA20), any close above will push the pair towards 1.3601(38.2%fib)
• Strong support is seen at 1.3409 (50%fib) and break below could take the pair towards 1.3365(July 16th low).
Recommendation: Good to sell around 1.3450 with stop loss of 1.3600 and target price of 1.3390
