Pound Sterling Price News and Forecast: GBP/USD pauses after last week’s hawkish-BoE-inspired strong move up

FXStreet Team FXStreet

GBP/USD Weekly Forecast: Pound Sterling stages comeback ahead of key US/ UK data

The Pound Sterling (GBP) gradually recovered ground against the US Dollar (USD), lifting GBP/USD from three-month lows to ten-day highs near 1.3500. The GBP/USD pair received a double-booster shot in the past week, which helped it to stage a decent comeback, recording its best weekly performance since late June.

The July American labor data disappointment and a slowdown in the services sector intensified concerns over US economic prospects, doubling down on expectations that the Fed will lower interest rates in September. Traders are pricing in a 93% chance of a rate cut in September, with at least two rate cuts priced in by the end of the year, the CME Group’s Fed Watch Tool showed. Read more...

GBP/USD consolidates just below mid-1.3400s; bullish potential seems intact

The GBP/USD pair kicks off the new week on a subdued note and consolidates its recent goodish recovery gains from the 1.3140 area, or the lowest level since April 14, touched earlier this month. Spot prices trade just below mid-1.3400s during the Asian session, nearly unchanged for the day, though the fundamental backdrop seems tilted in favor of bullish traders.

The Bank of England (BoE), as was widely expected, delivered a 25-basis-point (bps) rate cut last week, bringing the benchmark interest rate down to 4%, its lowest level since 2023. However, the narrow 5–4 vote split suggested more resistance to rate cuts than markets had expected and forced traders to scale back their bets on aggressive BoE easing. This might continue to underpin the British Pound (GBP), which, along with subdued US Dollar (USD) price action, acts as a tailwind for the GBP/USD pair. 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 recovers to 1.1750 region as 2025 draws to a close

Following the bearish action seen in the European session on Wednesday, EUR/USD regains its traction and recovery to the 1.1750 region. Nevertheless, the pair's volatility remains low as trading conditions thin out on the last day of the year.

GBP/USD stays weak near 1.3450 on modest USD recovery

GBP/USD remains under modest beairsh pressure and fluctuates at around 1.3450 on Wednesday. The US Dollar finds fresh demand due to the end-of-the-year position adjustments, weighing on the pair amid the pre-New Year trading lull.

Gold retreats to $4,300 area, looks to post monthly gains

Gold stays on the back foot on the last day of 2025 and trades near $4,300, possibly pressured by profit-taking and position adjustments. Nevertheless, XAU/USD remains on track to post gains for December and extend its winning streak into a fifth consecutive month.

Bitcoin, Ethereum and XRP prepare for a potential New Year rebound

Bitcoin, Ethereum, and Ripple are holding steady on Wednesday after recording minor gains on the previous day. Technically, Bitcoin could extend gains within a triangle pattern while Ethereum and Ripple face critical overhead resistance.

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).