GBP/USD Risks 1.37 Break as USD Firms, BoE and NFP Data Ahead

GBP/USD retreated from weekly highs as dollar recovery and profit-taking pressure the pair toward the critical 1.37 support level. The pound surrendered earlier gains amid renewed USD strength, with traders positioning ahead of next week's Bank of England monetary policy decision and Friday's US Non-Farm Payrolls report. The pair's inability to sustain momentum above 1.3750 resistance signals waning bullish conviction, while technical indicators suggest increasing downside risks. A decisive break below 1.37 could accelerate losses toward 1.3650, the next major support zone. Market participants remain cautious as both central banks navigate complex inflation dynamics, with the BoE expected to maintain its hawkish stance while the Fed's policy trajectory depends heavily on upcoming employment data. Near-term price action will likely remain range-bound between 1.37-1.3750 until clearer fundamental catalysts emerge from either monetary authority or labor market indicators.