FxWirePro: GBP/USD falls sharply after UK economic data points to labour market weakness

• GBP/USD slipped below 1.3500 level on Tuesday after UK data showed slowing wage growth and a rise in unemployment.

•.  Official data on Tuesday showed that pay growth in Britain slowed significantly while unemployment rose to its highest level in nearly four years during the three months to April.

• Wage growth excluding bonuses eased to 5.2% in the three months to April, marking the weakest pace since the period ending in September and falling more than expected from 5.5% recorded in January to March.

• The unemployment rate edged up to 4.6% from 4.5%, reaching its highest level since the three months to May 2021, according to the Office for National Statistics.

•The Bank of England, expected to hold rates steady next week, is assessing whether inflationary pressures in the UK labour market are easing enough to maintain its current pace of quarterly rate cuts.

•BoE Governor Andrew Bailey said domestic wage and price trends matter more for rate cuts than U.S. trade policy, though April's U.S. tariffs swayed some officials to back a cut in May.

•   Immediate resistance is located at 1.3602(23.6%fib), any close above will push the pair towards 1.3698(Higher BB)

•  Strong support is seen at 1.3448(38.2%fib) and break below could take the pair towards 1.3334(50%fib).

  Recommendation: Good to buy around 1.3480 with stop loss of 1.3250 and target price of 1.3700