GBP/USD Under Pressure as UK Services PMI Drops to 48.7, Missing Estimates

GBP/USD faces renewed selling pressure after the UK's June flash services PMI came in at 48.7, significantly below the 50.1 consensus and marking a deeper contraction from the prior reading of 49.3. The manufacturing PMI also disappointed at 53.1 versus 53.5 expected, dragging the composite PMI down to 49.4 against the anticipated 50.6. According to S&P Global's Chris Williamson, the data indicates the UK economy contracted for a second consecutive month, albeit at a modest 0.1% rate, effectively flat-lining over Q2 as a whole. The sharper decline in service sector activity is particularly concerning given the sector's dominant share of UK GDP. With the economy failing to gain traction, expectations for Bank of England rate cuts could intensify, adding further downside pressure on sterling. Traders should monitor the 1.2700 support zone for GBP/USD, as continued weak data may accelerate bearish momentum. Near-term resistance likely sits at pre-release levels around 1.2780.