GBP/USD faces pressure as UK Q2 GDP growth slows to 0.1%

GBP/USD is trading under pressure ahead of the UK Q2 GDP release, expected to show a sharp deceleration to 0.1% q/q growth from Q1's stronger performance. The anticipated slowdown reflects the reversal of export frontloading that boosted Q1 figures ahead of Trump's reciprocal tariffs, combined with deteriorating manufacturing conditions. Sterling traders are bracing for disappointing data that would contrast sharply with the government's earlier optimism about Q1 results. The manufacturing sector's weakness and fading export surge suggest limited upside potential for the pound. Technical levels show GBP/USD testing support near 1.2750, with resistance at 1.2820. A weaker-than-expected GDP print could accelerate sterling's decline toward 1.2700, while any positive surprise might offer temporary relief. The data's implications for Bank of England policy remain crucial, as persistent economic weakness could delay further rate normalization.