GBP/USD slides as weak UK employment data pressures sterling

GBP/USD has extended its decline following disappointing UK employment data, with the pair testing critical support levels as selling pressure intensifies. The latest UK labor market report revealed unexpected weakness, with unemployment claims rising more than forecast and wage growth showing signs of deceleration. This data reinforces concerns about the UK economic outlook and reduces expectations for aggressive Bank of England rate hikes. The pound's weakness comes as technical indicators flash warning signals, with the pair approaching key support near the 1.2650 area. A break below this level could accelerate losses toward 1.2600 and potentially 1.2550. The employment data adds to existing pressures on sterling from persistent inflation concerns and political uncertainty. Traders are now focusing on upcoming UK inflation data and any shifts in BoE rhetoric that could provide direction for the embattled currency.