• GBP/USD slipped lower on Thursday as pound came under pressure from a stronger dollar and lackluster UK PMI growth.
•U.S. trade deal momentum lifted the dollar on Thursday, pushing it higher against a basket of major currencies.
• Surveys show UK businesses are struggling and the job market is weakening, but lingering inflation pressures may lead the Bank of England to stick with a slow pace of rate reductions..
• S&P Global's flash UK Composite PMI fell to 51.0 in July from 52.0 in June, hovering just above the 50.0 threshold that marks expansion from contraction.
•A separate CBI survey indicated that the UK manufacturing sector, which makes up around 10% of the economy, has shown signs of stabilization following a period of decline.
• Markets are currently pricing in an 87.9% probability of a 25-basis-point interest rate cut by the Bank of England at its next meeting.
• Immediate resistance is located at 1.3602(38.2%fib), any close above will push the pair towards 1.3685(July 3rd high)
• Strong support is seen at 1.3437(50%fib) and break below could take the pair towards 1.3342(Lower BB).
Recommendation: Good to sell around 1.3540 with stop loss of 1.3620 and target price of 1.3470
