GBP in the spotlight: latest news

The Pound Sterling (GBP) is showing resilience against riskier currencies; however, it is experiencing selling pressure against safe-haven assets as the week begins.

Market analysis examines the outlook for the British Pound against the US Dollar and the US Dollar Index Futures, providing insights into the potential for the Pound to extend its gains in 2026.

The British pound experienced a slight rally on Friday, but it struggled to maintain its gains against the US dollar.

The US Dollar strengthened on Monday as traders anticipated a "risk off" sentiment following recent military actions by the US in Venezuela.

The GBP/EUR exchange rate reached a ten-week high on Monday as renewed geopolitical tensions impacted the Euro.

The GBP/USD forecast indicates a decline as risk sentiment weakens, resulting in higher demand for the safe-haven dollar.

In 2025, the GBP/USD pair increased from a 15-month low of 1.21 to reach a four-year high of 1.3790 by July 1, after which it entered a period of consolidation throughout the summer.

This weekly forecast highlights key trading pairs and markets, including EUR/USD, GBP/USD, gold, Bitcoin, NASDAQ, and silver. It outlines critical levels to monitor from January 4th to January 9th, 2026.

The GBP/USD exchange rate increased by 6.5% in 2025, primarily due to the weakness of the U.S. dollar rather than significant strength in the British pound, as indicated by the pound's inconsistent performance.

The favorable performance of the pound may be nearing its end as uncertainty looms on the horizon.

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The weekly market outlook highlights the focus on Non-Farm Payroll (NFP) Jobs Data, along with key developments in the US, UK, and Asian markets, as well as the performance levels of the S&P 500.

The Pound Sterling is expected to face challenges as we move into 2026, according to recent forecasts.

The British pound starts 2026 on shaky ground against the US dollar, with the GBP/USD price recently experiencing a decline in the latest 4-hour sessions.

GBP/USD experienced a slight increase on the first day of the year, trading at approximately 1.3470 during the Asian session on Friday. Technical analysis of the daily chart indicates a positive trend.

The GBP/USD currency pair is currently trading below 1.35, with potential upward movement above 1.3550 aimed at reaching 1.37. However, there are downside risks that may lead it toward the 50- and 200-day exponential moving averages, influenced by uncertainties surrounding the Federal Reserve and the Bank of England.

The U.S. dollar opened 2026 on a strong note on Friday, recovering from its significant decline last year against most currencies. Investors are anticipating an important week of economic developments.

The Pound to Euro (GBP/EUR) exchange rate remained stable on Friday as investors processed the recent PMI data from the UK and Eurozone.

The US dollar experienced a slight increase on Friday amid low trading volume.

The GBP/USD outlook is optimistic as we approach 2026, driven by a growing divergence between the Federal Reserve and the Bank of England that favors the pound. Political uncertainties and the Fed's dovish stance are contributing factors to this bullish trend.

The outlook for the British pound in 2026 will be influenced by several crucial factors, including interest rate cuts, inflation, and economic growth, following a strong performance against the dollar.

Wall Street concluded 2025 with the S&P 500 rising 16% to reach 6,845, while the Nasdaq stood at 23,242. Gold prices approached $4,332, bitcoin hovered around $88,000, and oil was priced at $57. The outlook for 2026 remains focused on advancements in artificial intelligence.

The GBP/USD pair is currently trading between 1.34 and 1.35, reflecting an 8% increase in 2025. The DXY index stands at approximately 98, while the Federal Reserve's interest rates range from 3.50% to 3.75%. The outlook also considers potential cuts from the Bank of England and a UK unemployment rate of 5.1%.

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