GBP/USD rises near 1.3400 ahead of Q3 UK GDP data
The GBP/USD pair rose after three days of losses, trading around the 1.3390 level during Asian business hours on Monday. The value of the pair declines as the pound stabilizes ahead of the release of the UK Gross Domestic Product (GDP) for the third quarter.
The British pound could face headwinds as markets have fully priced in the first rate cut by the Bank of England (BoE) in June 2026, while the probability of a cut in March is at 40% relatively high, according to interest rate probability data from Capital Edge. Read more…
GBP/USD Annual Forecast: Will 2026 Be Another Bull Year for Sterling?
Having concluded 2025 on a positive note, the British Pound (GBP) is looking forward to another beneficial and upbeat year against the US Dollar (USD) at the start of 2026. The GBP/USD pair is expected to face a bleak UK economic outlook and geopolitical risks, while the potential for a monetary policy divergence between the Federal Reserve (Fed) and the Bank of England (BoE) could act as a tailwind.
In hindsight, the currency pair’s journey in 2025 was anything but a dreamy ride in the first half of the year, after the initial rough correction. The British pound hit an almost 15-month low of 1.2100 against the US dollar in January, and since then, there has been no looking back, with buyers reaching an almost four-year high of 1.3789 on July 1. Read more…
