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GBP/USD Weekly Outlook: Sterling Stumbles as Dollar Dominates and Policy Diverges

GBP/USD faced headwinds last week as the dollar’s resilience limited the pound’s gains despite positive UK labor data and softer US inflation numbers. Diverging central bank policies—expectations of an earlier BoE cut versus a patient Fed—combined with political uncertainties continue to cap upside. Technically, the pair remains range-bound between 1.2600 and 1.2860, with a break above key resistance needed for bullish momentum. Watch closely as market sentiment and monetary cues shape the path ahead.

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**GBP/USD Faces Steep Decline Amid Fiscal Concerns: FxWirePro Highlights Sterling’s Struggles and Technical Outlook**

GBP/USD has weakened as growing fiscal concerns weigh on the British pound. Elevated government borrowing, persistent budget deficits, and rising debt-to-GDP ratios are fueling investor caution. Combined with the Bank of England’s cautious monetary stance and political uncertainty ahead of elections, sterling faces downward pressure. Technicals show key supports breaking, signaling further challenges ahead for GBP/USD.

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**U.S. Dollar Rises from Session Lows as Focus Turns to U.S.-Switzerland Tax Deal: In-Depth Outlook on EUR/USD, GBP/USD, USD/CAD, and USD/JPY**

The U.S. Dollar rebounded strongly from session lows as markets focused on the new U.S.-Switzerland tax accord, sparking shifts in risk sentiment and capital flows. This impacted major pairs like EUR/USD, GBP/USD, USD/CAD, and USD/JPY amid evolving central bank signals and macro divergence. Traders watch key support and resistance levels as the greenback regains momentum.

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Forex Focus: Dollar Retreats as EUR, GBP Surge in Friday’s Early Trading

The US dollar softened in early Friday trading, allowing EUR/USD and GBP/USD to recover modestly while EUR/GBP steadied. Mixed US economic data and shifting risk sentiment tempered the dollar’s rally. Watch key levels: EUR/USD support near 1.0850, resistance at 1.0910; GBP/USD gaining as BoE cautiousness supports sterling. Market awaits further data and central bank signals for next directional cues.

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