Analysts say the pound may come under pressure ahead of the Federal Reserve decision and the release of the UK budget.

[Analyst: GBP/USD May Remain Under Pressure Ahead of Federal Reserve Decision and UK Budget Announcement] XS.com analyst Simon-Peter Massabni stated in a report that GBP/USD may continue to come under pressure before the Federal Reserve's interest rate decision and the UK's budget announcement are released on Wednesday, as markets wait for clearer insight on the outlook. He noted that if the UK budget can boost market confidence in the country’s fiscal position and the Federal Reserve’s comments regarding possible future rate hikes are less hawkish than expected, the rebound prospects for GBP/USD would improve. Conversely, if the budget is disappointing and the Federal Reserve signals a hawkish stance, the pound’s pullback may persist for a longer period.