GBP/USD plunges to 1.3060 amid UK economic concerns and USD strength

GBP/USD has declined sharply to 1.3060, marking a significant drop as sterling faces pressure from deteriorating UK economic fundamentals and persistent dollar strength. The pair has fallen through multiple support levels, with traders citing concerns over UK inflation dynamics and potential Bank of England policy constraints. Recent UK economic data has disappointed, while the US dollar maintains its appeal ahead of key economic releases. Technical indicators suggest oversold conditions, but momentum remains firmly bearish. Immediate support lies at 1.3050, coinciding with the psychological level and previous monthly lows. Resistance is now seen at 1.3100-1.3120 zone. Traders are closely monitoring upcoming UK GDP data and any shifts in BoE rhetoric that could either accelerate the decline toward 1.3000 or trigger a relief rally. The prevailing sentiment remains negative for sterling in the near term.