GBP/USD Slips to 1.3390 as UK GDP Contracts 0.1% in April

GBP/USD is trading near 1.3390 after UK GDP contracted 0.1% m/m in April, reviving growth concerns and capping sterling gains. The pair opened near 1.3430-1.3450 in late May, briefly tested 1.3500 on US-Iran deal optimism, then slid below the 200-day moving average following Strait of Hormuz attacks and strong US jobs data. It hit a three-week low of 1.3306 on June 9 before consolidating in the mid-1.33 area. OCBC shifted its GBP outlook from bearish to neutral on June 2 citing better data and reduced downside risks, while markets now price higher odds of Fed tightening by December.