March 13 (Reuters) - Further upside in GBP/USD may be harder to come by as narrow ranges take over from the euro euphoria that launched the single currency higher following last week's German fiscal shock -- and dragged GBP/USD along with it. UK gilts are approaching the danger zone for sterling with the 10-year above 4.7% and nearing the YTD high at 4.92%. While higher yields are often a positive for a currency, given the fiscal jitters surrounding the UK and the likely increased focus ahead of March 26 UK budget update, higher yields would serve to exacerbate those concerns. Consequently, leading into the budget update, GBP is vulnerable to a pullback. UK GDP due on Friday, is typically not a needle mover, but with the budget update around the corner, the data may garner more attention than usual.

On the technical front, pullbacks will bring the 200-day MA into focus at 1.2790, while on the topside, resistance sits at 1.30 and 1.3046 (pre-U.S. election level).
GBPUSD daily chart

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)