GBP/USD weakens ahead of crucial UK GDP and employment data releases

GBP/USD has declined 0.25% to 1.2675 in early Monday trading as sterling faces pressure ahead of key UK economic releases. The pair's weakness reflects growing concerns about the UK economic outlook, with markets anticipating Wednesday's GDP data and Thursday's employment figures. Recent PMI data showed UK services sector growth slowing to 51.2 from 51.7, adding to bearish sentiment. Technical indicators point to building downside momentum, with the pair breaking below the 1.2700 support level and eyeing the next support at 1.2650 (100-day moving average). Resistance now sits at 1.2700-1.2720 zone. The Bank of England's cautious stance on rate cuts amid persistent inflation concerns provides limited support for sterling. Traders expect volatility to increase significantly around the data releases, with disappointing figures potentially accelerating GBP/USD's decline toward 1.2600, while positive surprises could trigger a relief rally back above 1.2700.