GBP/USD Falls as UK Budget Uncertainty Weighs on Sterling

GBP/USD has declined amid growing investor concerns over the upcoming UK budget announcement, with sterling facing increased selling pressure. The currency pair has weakened as markets price in potential fiscal policy changes that could impact UK economic growth and inflation dynamics. Traders are particularly wary of possible tax increases and spending cuts that Chancellor Rachel Reeves may introduce to address the UK's fiscal challenges. The uncertainty has prompted a risk-off sentiment toward the pound, with investors seeking safer havens ahead of the budget reveal. Technical indicators suggest GBP/USD is testing key support levels, with the pair vulnerable to further downside if budget measures disappoint market expectations. The combination of fiscal uncertainty and broader dollar strength has created a challenging environment for sterling bulls. Traders should monitor upcoming UK economic data releases and any pre-budget commentary from government officials for potential volatility triggers.