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The GBP/USD pairing seems to only be moving on news coming from the US over the last few weeks, which puts into question why it is completely ignoring the obvious downside risks associated with the UK economic outlook.
When you consider unemployment figures have been on the rise almost every month, decisions made to raise NI contributions which has contributed to a lack of investment in the UK as businesses try to absorb the additional costs combined with undeniable fiscal drag and all signs pointing towards stagflation it is a little vexing to see why the GBP has been so strong. Let’s also not forget that GDP has yet again been downgraded for 2026.
Granted, none of the key headline items above have happened yet, but the price sitting around the 1.34 level appears to be somewhat skewed based upon very low US dollar sentiment levels.
The price action has been very narrow in the last two weeks, and when we look at the daily chart below, there are several trendlines converging. 
There is a move coming. Given the UK budget is still six weeks away and the uncertainty that brings, the odds would favour that the next move is to the downside. Figures in the region of a 50bn pound black hole to fund, manifesto pledges to not raise tax, and the unwavering bond yields tracking the highest rate of inflation in the G7 would support this.