BBH, SocGen Warn UK Elections, Fiscal Risks Pressure GBP/USD After 1.3630 Rally

GBP/USD comes under pressure from UK political and fiscal risks highlighted by BBH and Societe Generale, threatening the recent rally above 1.3630 to pre-war levels. The pair plunged below 1.3550 on May 4 after Iranian missiles hit a US warship, reversing from 1.3650 highs, but rebounded to 1.3630 on May 6 amid US-Iran diplomatic progress via Axios-reported memorandum talks and BOE rate hike pricing. BBH cautions local elections testing PM Starmer, potential leftward policy shifts, and nominal GDP trailing 10-year gilt yields could drive sterling lower toward supports at 1.3450-1.2400.