FxWirePro: GBP/USD slides toward critical support market reassesses UK political transition

• GBP/USD dipped on Tuesday as market awaits more news on the next UK government after the resignation of Keir Starmer.

• Starmer's resignation clears the way for a smooth transfer of power, with Makerfield's newly elected MP, Andy Burnham, emerging as the likely successor.

• Investors are eager to gain more clarity on Burnham's fiscal plans at a time when public debt has climbed to nearly 100% of the country's economic output.

• Meanwhile, data showed that the services sector contracted in ​June at the ⁠fastest rate in nearly three-and-a-half years.

•  S&P Global's Composite Purchasing Managers' Index (PMI), which combines services and manufacturing activity, fell to 49.4 in June from 49.7 previously. The Services PMI declined to 48.7 from 49.3, marking its weakest reading since January 2023.

•   Immediate resistance is located at 1.3278(Daily high), any close above will push the pair towards 1.3371(38.2%fib)

•  Strong support is seen at 1.3170(23.6%fib) and break below could take the pair towards 1.3108(Lower BB).

  Recommendation: Good to sell  around 1.3200, with stop loss of 1.3300  and target price of 1.3150