GBP/USD Falls to Multi-Week Lows on Weak UK Data, Strong Dollar
GBP/USD has declined sharply to test multi-week lows near 1.2650, dropping 0.8% (105 pips) as disappointing UK economic data compounds pressure from broad dollar strength. UK Manufacturing PMI contracted to 47.2 in July, missing forecasts of 48.5, while consumer confidence plunged to -15, its lowest level since March. The pound's weakness accelerated after Federal Reserve Chair Powell's hawkish stance reinforced expectations for sustained higher US rates. Technical indicators show GBP/USD breaking below the key 1.2700 support level, with immediate support now at 1.2630 (June low). Resistance stands at 1.2720 (former support turned resistance). The bearish momentum suggests further downside toward 1.2600 psychological support is likely, especially if upcoming UK GDP data disappoints. Traders should monitor the Bank of England's response to weakening economic indicators.
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