• GBP/USD eased slightly on Friday after data showed UK economy had stagnated in July.
• UK gross domestic product was unchanged in July, following a 0.4% expansion in June, according to the Office for National Statistics.
•The flat reading reflected a sharp 1.3% monthly decline in manufacturing output, which accounts for about 9% of the economy.
• Manufacturing output, which represents 9% of the economy, fell 1.3% in July its sharpest monthly drop in a year driven by declines in computers, electronics, and pharmaceuticals.
• Meanwhile, separate data showed the UK goods trade deficit widened to £22.244 billion ($30.2 billion) in July, the largest since January 2022, compared with £22.156 billion in June.
. • At GMT 11:46, the pound was down 0.18% to 1.3549 against the dollar.
• Immediate resistance is located at 1.3588(Higher BB), any close above will push the pair towards 1.3646(38.2%fib)
• Strong support is seen at 1.3493 (50%fib) and break below could take the pair towards 1.3400(Lower BB).
Recommendation: Good to buy around 1.3530 with stop loss of 1.3430 and target price of 1.3620
