GBP/USD Holds 1.3428 as UK Services PMI Contracts to 47.9

GBP/USD stabilized near 1.3428 after UK April CPI undershot forecasts at 2.8% y/y versus 3.0% expected. The softer print initially reduced BoE tightening bets and pressured sterling, yet the pair later consolidated within the 1.3388-1.3490 range as markets digested base effects and looming energy-price risks. On 21 May, fresh weakness emerged when flash services PMI plunged to 47.9, signaling contraction and raising recession concerns that could prompt earlier BoE easing.