GBP USD

GBP/USD trades below the May low (1.2446) as it extends the decline from earlier this week.

See a technical preview of our 2025 GBP/USD Outlook report!

See a technical preview of our 2025 GBP/USD Outlook!

GBP/USD struggles to retrace the decline following the Federal Reserve interest rate decision even as the Bank of England (BoE) keeps the Bank Rate at 4.75%.

British Pound is trading into resistance with the December opening-range intact ahead of the Fed / BoE. Battle lines drawn on the GBP/USD weekly technical chart.

Investors are eagerly anticipating what could be the final hurrah for volatility in 2024, with the Federal Reserve, Bank of Japan, as well as the BoE, all poised to reveal their rate decisions and provide outlook for the upcoming year. The GBP/USD forecast remains bearish.

Investors anticipate what could be the final burst of volatility in 2024, with the Federal Reserve, Bank of England, and other major central banks unveiling their monetary policy plans for the upcoming year. The GBP/USD forecast remains bearish in this high-stakes environment.

GBPUSD Forecast: the pound’s drop against the dollar’s rally was cushioned at the 1.2480 low, further supported by rate hold expectations given the inflationary risks of UK’s new labor law. However, today’s contracting GDP reading at -0.1% reflects growth concerns and adds complexities to next week’s BOE decision.

EUR/USD looks to the ECB rate decision. GBP/USD stays in range ahead of US PPI data & jobless claims.

GBP/USD trades within the opening range for December as it gives back the advance from the start of the week.

Showcasing the GBP strength is the struggling EUR/GBP. With the latter testing the 0.82 support area, sterling is therefore trading at its best levels since March 2022 against the euro. But against the dollar, it has been held back. In fact, I reckon there is a good chance we may see the GBP/USD start to head lower again and may even go on to break 1.2500 support, once UK’s services inflation eases more significantly - possibly in early next year. If seen, that would allow the BoE to turn more dovish. So, the GBP/USD outlook remains bearish heading into 2025.