GBP/USD Exchange rate

Editors’ Picks

EUR/USD eases to near 1.1650, eyes US PCE for fresh impetus

EUR/USD turns south to test 1.1650 in European trading on Friday, facing rejection once again near seven-week highs. The pair, however, continues to draw support from persistent US Dollar selling bias, despite a cautious market mood. Traders now await the US September PCE inflation and UoM Consumer Sentiment data.

GBP/USD holds gains near 1.3350 ahead of US data

GBP/USD sticks to a positive bias near 1.3350 in the European session on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation and sentiment data due later in the day. In the meantime, broad-based US Dollar weakness helps the pair stay afloat.

Gold remains below $4,250 barrier as traders await US PCE data for directional impetus

Gold gains some positive traction on Friday, though it remains confined in the weekly range. Dovish Fed expectations continue to undermine the USD and lend support to the commodity. Bulls, however, might opt to wait for the US PCE Price Index before placing aggressive bets.

UoM Consumer Sentiment Index expected to post a mild recovery in December

December’s preliminary Michigan Consumer Sentiment Index is forecast to have picked up to 52 from a three-year low of 51.0 in November. A stalled labour market and higher price pressures are likely to weigh on consumers’ confidence.

Canada Unemployment Rate expected to edge higher in November ahead of BoC rate decision

Statistics Canada will release its Labour Force Survey on Friday, and markets are bracing for a weak print. The Unemployment Rate is expected to tick higher to 7% in November, while the Employment Change is forecast to come in flat after a nice gain in October.

Majors

Cryptocurrencies

Signatures

GBP/USD

The GBP/USD (or Pound Dollar) currency pair belongs to the group of 'Majors', referring to the most important and widely traded pairs in the world. The pair is also known as “the Cable”, a term originating in the mid-19th century that refers to the first transatlantic telegraph connecting Great Britain and the United States.

As a closely watched and widely traded currency pair, it features the British Pound as the base currency and the US Dollar as the counter currency. For that reason, macroeconomic data from both the United States and the United Kingdom significantly impacts its price. One notable event that affected the volatility of the pair was Brexit.

HISTORIC HIGHS AND LOWS FOR GBP/USD

All-time records: Max: 2.4334 October 1980 – Min: 1.0339 on 23/09/2022
Last 5 years: Max: 1.4248 on 28/05/2021 – Min: 1.0339 on 23/09/2022

* Data as of December 2024

GBP/USD 2025 FORECAST

In the GBP/USD 2025 Forecast , FXStreet Analyst Dhwani Mehta indicates divergence between United States Federal Reserve (Fed) and Bank of England (BoE) monetary policy expectations and Donald Trump’s announced protectionist measures may strengthen the US Dollar (USD).

The Fed is signaling a more cautious approach to monetary policy as it navigates strong economic growth and rising inflationary pressures under the new Trump administration. From a technical point of view, the GBP/USD pair faces further downside after breaking below the 18-month rising wedge support at 1.2682, with the RSI in negative territory. Key support levels are 1.2037, 1.1802, and 1.1500, potentially leading to the 1.1000 mark. Recovery attempts face resistance at 1.2900, with bullish momentum only confirmed above 1.3490.

Read the full 2025 forecast .

INFLUENTIAL CURRENCIES FOR GBP/USD

The GBP/USD pair can also be impacted by other currencies, in particular the Euro (EUR), the Canadian Dollar (CAD), the Japanese Yen (JPY) and the Chinese yuan renminbi (CNY). This group also includes the following currency pairs: EUR/USD , USD/JPY , AUD/USD , USD/CHF, NZD/USD , USD/CAD , GBP/JPY and EUR/JPY .

INFLUENTIAL ORGANIZATIONS FOR GBP/USD

The Bank of England (BoE) : Founded in 1694, the Bank of England (BoE) is the central bank of the United Kingdom (UK). Known as ‘The old lady of Threadneedle Street’, the bank’s mission is "to promote the good of the people of the United Kingdom by maintaining monetary and financial stability". The Bank of England is responsible for maintaining the UK’s economic stability. It operates monetary policy by adjusting the Bank Rate and, in certain circumstances, supplements this with measures such as quantitative easing.

The Bank of England decides monetary policy for the United Kingdom. Its primary goal is to achieve a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
The Federal Reserve (Fed) is the central bank of the United States (US) and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. The FOMC Minutes, which are released by the Board of Governors of the Federal Reserve weeks after the latest meeting, are a guide to the future US interest-rate policy.
London’s City Financial District: One of the largest and most developed financial markets in the world, it plays a pivotal role in driving the UK’s economic growth, with banking and finance serving as significant contributors to the national economy.
The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone. It also influences the Cable (GBP/USD) due to the significant trade and business ties between the Eurozone and the UK. Any macroeconomic decision by the ECB impacts the Eurozone's commercial partners. As the world’s second-most important currency after the US Dollar, movements by the ECB often have far-reaching implications for its trading partners.