Pound Sterling Price News and Forecast: GBP gains against USD as BoE supports gradual rate-cut approach

FXStreet Team FXStreet

Pound Sterling gains against USD as BoE supports gradual rate-cut approach

The Pound Sterling (GBP) recovers intraday losses and turns positive against the US Dollar (USD) in Tuesday’s London session after diving near the psychological support of 1.2500 in Asian trading hours. The GBP/USD pair rebounds as the US Dollar surrenders its entire intraday gains after a strong opening.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, had a stellar opening after President-elect Donald Trump warned that he would impose 25% import tariffs on all products from Canada and Mexico. Trump added that there will be an additional 10% tariff on imports from China for pouring illicit drugs into the United States (US) through Mexico. Read more...

GBP/USD Forecast: Pound Sterling stabilizes between key technical levels

After briefly rising above 1.2600 on Monday, GBP/USD reversed its direction to close the day in the red. The pair declined to the 1.2500 area during the Asian trading hours on Monday but managed to recover toward 1.2550 by the European morning.

The US Dollar came under heavy selling pressure at the start of the week and helped GBP/USD gather bullish momentum. News of Donald Trump selecting fund manager Scott Bessent as the US Treasury Secretary eased concerns over unorthodox fiscal policies. Later in the day, however, markets have adopted a cautious stance as Trump announced that he would impose a 25% tax on all products entering the US from Canada and Mexico in addition to a 10% tariff on goods from China as one of his first executive orders. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD retreats below 1.1750 on modest USD recovery

EUR/USD stays under modest bearish pressure and trades below 1.1750 on Friday. Although trading conditions remain thin following the New Year holiday and ahead of the weekend, the modest recovery seen in the US Dollar causes the pair to edge lower. The economic calendar will not feature any high-impact data releases.

GBP/USD struggles to gain traction, stabilizes above 1.3450

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and moves sideways above 1.3450 as market participants remain in holiday mood.

Gold climbs toward $4,400 following deep correction

Gold reverses its direction and advances toward $4,400 after suffering heavy losses amid profit-taking before the New Year holiday. Growing expectations for a dovish Fed policy and persistent geopolitical risks seem to be helping XAU/USD stretch higher.

Cardano gains early New Year momentum, bulls target falling wedge breakout

Cardano kicks off the New Year on a positive note and is extending gains, trading above $0.36 at the time of writing on Friday. Improving on-chain and derivatives data point to growing bullish interest, while the technical outlook keeps an upside breakout in focus.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).