GBP/USD Slides Below 1.35 as UK PMI Data Disappoints

GBP/USD tumbled 0.8% to 1.3485, breaking below the crucial 1.35 psychological support after UK flash PMI data revealed unexpected economic weakness. The Composite PMI plunged to 48.5 in September from 50.8, marking the first contraction reading in six months. Manufacturing PMI fell to 47.2 versus 49.5 expected, while Services PMI dropped to 49.1 from 51.2 previously. The disappointing data suggests the UK economy is losing momentum faster than anticipated, potentially delaying the Bank of England's normalization plans. Sterling weakness accelerated through the European session, with GBP/USD touching a low of 1.3475. Technical indicators point to further downside risk, with the next support at 1.3420 (August low). The weak PMI readings contrast sharply with market expectations for continued UK economic resilience, forcing traders to reassess sterling positioning ahead of next week's BoE policy meeting.