Pound Sterling Price News and Forecast: GBP/USD stretches higher, approaching 1.3800 with the US Dollar

FXStreet Team FXStreet

GBP/USD stretches higher, approaching 1.3800 with the US Dollar at long-term lows

The Pound is accelerating its uptrend on Tuesday, unaffected by rather downbeat UK manufacturing PMI data. US Dollar weakness is driving markets today with tariff uncertainty, renewed concerns about the US fiscal health, and rising bets on Fed cuts crushing demand for the US Dollar.

UK manufacturing activity has remained steady at 47.7 in June, but new orders, employment and output declined from the previous month and pointing to further contraction in the coming months. Read more...

GBP/USD Forecast: Pound Sterling could face stiff resistance at 1.3830

GBP/USD gathers bullish momentum following Monday's choppy action and trades at its highest level since October 2021 above 1.3770. In the second half of the day, macroeconomic data releases from the US and comments from central bankers could drive the pair's action.

Following the previous week's sharp decline, the US Dollar (USD) Index stays under bearish pressure early Tuesday, fuelling GBP/USD's rally. The risk-positive market atmosphere and increasing political pressure on the Federal Reserve (Fed) continue to weigh on the USD. Read more...

GBP/USD forecast: Can the British Pound rally sustain as the Dollar dips and risk tensions mount?

With the U.S. dollar under pressure and UK data stabilizing, the British pound could extend gains - but fragile sentiment and political risks may limit upside.

The British pound is trading with a cautiously bullish tone, finding strength above the 1.3700 level as the U.S. dollar loses momentum. While Fed rate cut bets and falling U.S. bond yields continue to drag the greenback lower, sterling's gains are more a reflection of dollar weakness than overwhelming UK strength. 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 moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

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.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.