According to a report by S&P Global, the British Pound (GBP) has continued to decline in value as the United Kingdom's service sector experiences a contraction. This is primarily due to weakened demand from households and the private sector, which can be attributed to the high-interest rate environment. Although there have been attempts at recovery with the GBP/USD pair reaching an 11-week low, market participants may view this as an opportunity to sell given the prevailing bearish sentiment in the overall market.
Comment:
The pair's near-term technical outlook suggests sellers may continue to control the action as long as resistance at 1.2560 remains in place.
