GBP/USD pressured by UK fiscal concerns amid budget uncertainty

GBP/USD faces renewed selling pressure as concerns over UK fiscal stability weigh on sterling sentiment. The pair has declined 0.4% to test support near 1.2650, with traders increasingly worried about the UK government's fiscal trajectory following recent budget announcements. Market participants are pricing in higher borrowing costs and potential credit rating downgrades, putting additional strain on the pound. The UK's debt-to-GDP ratio approaching 100% has amplified concerns about fiscal sustainability. Technical indicators show GBP/USD breaking below its 50-day moving average at 1.2680, with immediate support at 1.2630 and resistance at 1.2720. EUR/GBP has consequently risen to 0.8340, reflecting relative pound weakness. USD/CHF remains rangebound near 0.8850 as safe-haven flows balance out. Traders should monitor upcoming UK gilt auctions and any statements from rating agencies for further directional cues.