GBP/USD Stalls Near 1.3700 as Political Uncertainty Weighs

GBP/USD has stalled near the 1.3700 level as political uncertainty in the UK clouds the outlook for further sterling gains. While the pair has benefited from broad US dollar weakness in recent sessions, domestic political developments are creating headwinds that have slowed the bullish momentum. The political noise is muddying the fundamental picture for the pound, making traders cautious about extending long positions at elevated levels. The US Dollar Index Futures continue to trade on the back foot, which has provided underlying support for cable, but the lack of fresh catalysts from the UK side has kept the pair range-bound near resistance. Technical indicators suggest that 1.3700 serves as a key resistance area, with a break above potentially targeting 1.3750-1.3800, while support is established near 1.3650. This week's US economic data releases, including jobs and CPI, could be the catalyst needed to break the current consolidation. Traders should factor in the elevated political risk premium when sizing positions on GBP pairs.