1 July GBPUSD outlook: Potential for further declineBritish Pound / U.S. DollarFOREXCOM:GBPUSDChartingGenieGBPUSD has pared its recent losses and retested the H4 bearish Fair Value Gap (FVG) highlighted in blue. Price also swept the previous day's high before reversing sharply lower, suggesting the broader downtrend may be resuming. Holding below 1.32661 could reinforce bearish momentum and expose the next support at 1.31404. However, a break above 1.32661 may trigger a deeper pullback toward the next resistance at 1.33050. Fundamental perspective: The pound-dollar slipped amid a softening economic outlook and ongoing political uncertainty. UK household incomes weakened while consumers relied more on savings to support spending, highlighting underlying pressure on domestic demand despite stronger 1Q growth. Meanwhile, attention remained on the political transition, with Burnham expected to take office as PM while facing difficult fiscal decisions, including addressing a sizeable funding gap in the government's long-term defence spending plans. Fiscal uncertainty and evolving BoE policy expectations may keep the pair volatile. By Li Xing Gan, Financial Markets Strategist Consultant to Exness