In this GBPUSD analysis, we decipher the currency pair from technical and fundamental aspects. It also features trend examination, price forecasts, support and resistance levels, and trading signals.

We update this page daily to ensure you have the latest information by covering the price changes.

GBPUSD Live Chart

GBPUSD Analysis: Fundamental View

Bloomberg—The British pound climbed above $1.280, marking its highest level since November 12, as the US dollar weakened due to concerns over the American economy and upcoming tariffs.

As of this writing, GBPUSD trades at approximately $1.282. Meanwhile, the RSI 14 records show 73, meaning the Pound Sterling is overpriced, which could cause the market to consolidate near the lower support levels.

GBPUSD Strengthens on Prolonged UK Rate Outlook

The pound also gained support from expectations that UK interest rates will remain elevated for an extended period. Traders lowered their expectations for Bank of England rate cuts in 2025 to 52 basis points.

Ramsden Hints at Flexible Rates Amid Wage and Inflation Woes

BoE Deputy Governor Ramsden noted that persistent wage growth could keep inflation high but hinted that the BoE could increase the pace of cutting rates if necessary.

Additionally, the pound faced less risk from potential US tariffs after Trump suggested a trade agreement with the UK that might prevent new duties.

Germany and UK Ramp Up Defense Budgets

Germany announced a significant boost in defense and infrastructure spending, while the UK confirmed plans to increase defense funding, offsetting the costs by reducing development budgets.