- GBP/USD Range-Bound: The pair stays around 1.2900, lacking clear direction.
- US Dollar Strengthens: Expectations of inflation from Trump’s policies limit GBP/USD upside.
- BoE’s Hawkish Tone: The Bank of England's stance helps support the pound.
GBP/USD Price Forecast: Bearish Outlook Holds Near 1.2900
The GBP/USD pair softened to around 1.2910 during the early European session on Monday. The stronger US Dollar, bolstered by Donald Trump’s election win, continues to weigh on the pair. Traders are pricing in expectations that inflationary pressures will prevent the US Federal Reserve (Fed) from making aggressive rate cuts in the near future.
Meanwhile, the Bank of England (BoE) maintained its stance, emphasizing that "a gradual approach to removing policy restraint remains appropriate," signaling that restrictive monetary policy will be necessary for a prolonged period. The less dovish tone from the BoE may help cap the GBP's downside in the short term, limiting further losses against the US Dollar.
GBP/USD Weekly Forecast: Rebound Bets Appear Premature as Focus Shifts to UK GDP and US Inflation Data
The Pound Sterling (GBP) managed a modest rebound against the US Dollar (USD), lifting the GBP/USD pair from a three-month low near 1.2835.
For the first time in five weeks, GBP/USD moved back into positive territory, driven by global market optimism and key central bank policy announcements. However, the renewed strength of the US Dollar remains a challenge, and traders are now turning their attention to upcoming UK GDP data and US inflation reports to gauge the next potential moves for the pair.
GBP/USD Struggles for Clear Direction, Stays Range-Bound Around 1.2900
The GBP/USD pair begins the week on a softer note, though it lacks significant selling momentum and remains range-bound around the 1.2900 level, amid mixed fundamental factors.
The US Dollar (USD) holds steady just below a four-month high reached last week, as market expectations grow that US President-elect Donald Trump's policies could drive inflation and limit the Federal Reserve's ability to ease policy aggressively. This is seen as a headwind for GBP/USD. However, the Bank of England's relatively hawkish stance continues to provide some support for the pound, helping to cap further downside.
