Pound Sterling Price News and Forecast: GBP/USD loses momentum, pressured by renewed US Dollar demand

FXStreet Team FXStreet

GBP/USD Price Forecast: Softens below 1.3500 but retains positive technical outlook

The GBP/USD pair loses momentum near 1.3485 during the early European session on Monday, pressured by renewed US Dollar (USD) demand. The potential downside for a major pair might be limited, as the Bank of England (BoE) guided that monetary policy will remain on a gradual downward path.

The BoE’s Monetary Policy Committee decided to cut a quarter point in its benchmark interest rate to 3.75% at its December meeting, the first cut since last August. Governor Andrew Bailey said during the press conference that rates are likely to continue on a gradual downward path, but "how much further we go becomes a closer call" with each cut. Read more...

GBP/USD edges higher above 1.3500, eyes Fed rate cut outlook

GBP/USD gains after a gap-down open, trading around 1.3510 during the Asian hours on Monday. The pair gains ground as the US Dollar (USD) faces challenges, which could be attributed to growing expectations of two more rate cuts by the Federal Reserve (Fed) in 2026.

Traders are likely to focus on the Federal Open Market Committee (FOMC) December Meeting Minutes due on Tuesday, which may shed light on internal policy debates shaping the Fed’s outlook for 2026. Read more...

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