GBP/USD Under Pressure as Strong US Dollar Overpowers Sterling

GBP/USD remains under selling pressure as broad-based US dollar strength continues to dominate price action, pushing the pair lower despite relatively stable UK domestic fundamentals. The analysis highlights that sterling's weakness is not driven by political uncertainty or deteriorating UK economic data, but rather by the greenback's relentless rally, which has seen the US Dollar Index climb to fresh 2026 highs. The Fed's hawkish stance, supported by resilient US economic data, has kept rate cut expectations subdued, bolstering dollar demand across the board. On the European side, EUR/GBP cross dynamics also factor into the pound's trajectory, with the euro exerting additional indirect pressure. From a technical perspective, GBP/USD faces key support near recent lows, with any bounce likely capped by overhead resistance as long as the dollar rally persists. Traders should watch upcoming US data releases and any shifts in Bank of England rhetoric for potential catalysts that could alter the pair's bearish trajectory in the near term.