Created
: 2025.05.28
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
GBP/USD: Poised to buckle under the weight of its own success?
World FX news
Breaking news
GBP/USD: Poised to buckle under the weight of its own success?
New
2025.05.28 08:23
2025.05.28 08:23
2025.05.28 08:23
- GBP/USD snapped a six-day win streak on Tuesday, falling back after a flubbed stretch for 1.3600.
- US Dollar strength is largely behind the near-term bearish flip in GBP/USD flows.
- UK data remains limited through this week, but high-impact US inflation figures loom ahead.
GBP/USD pared recent gains on Tuesday, snapping a six-day win streak and knocking price action away from the 1.3600 handle after the pair tapped fresh multi-year highs this week. Another tariff-talk-fueled upswing in broad-market investor sentiment bolstered the US Dollar (USD), sparked by the Trump administration once again stepping back from its own tariff threats.
The Bank of England (BoE) is looking less likely to deliver as many rate cuts as many had expected earlier in the year, helping to bolster the Pound Sterling into its highest prices against the Greenback since early 2022. Further appearances from BoE policymakers are expected over the rest of the week, but the narrative is not expected to change much.
US President Trump recently mused via social media about imposing an additional 50% across-the-board tariff on all imports from the European Union (EU) beginning on June 1. However, President Trump has already walked back his own tariff threat, following a pattern that has become increasingly familiar to investors, and pushed the 50% EU tariff deadline back to July 9.
The remainder of the week will be heavy on the US side. The Federal Reserve's (Fed) latest Meeting Minutes will be published on Wednesday, with US Q1 Gross Domestic Product (GDP) growth slated for Thursday. Friday will wrap up the trading week with US Personal Consumption Expenditure Price Index (PCE) inflation data for April, and markets are hoping for a continued easing in key inflation metrics before the fallout from the Trump administration's tariff policies begins to leak into headline datasets.
GBP/USD price forecast
GBP/USD closed flat or higher for six straight sessions over the past week and a bit, coming within inches of reclaiming the 1.3600 handle. However, markets had to blow off pressure, and Cable has eased back toward the 1.3500 region heading into the midweek.
GBP/USD daily chart
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Last updated
: 2025.05.28
Related articles
Canadian Dollar lurches higher on upbeat quarterly GDP growth
2025.05.31 05:26USD/CHF Price Forecast: Flat as inflation cools, as US-China tensions rise
2025.05.31 05:11AUD/USD trades sideways as fundamental and technical factors weigh on price action
2025.05.31 05:11EUR/USD holds steady as US PCE softens, trade tensions offset USD weakness
2025.05.31 04:20EUR/JPY falls as Bank of Japan faces pressure to raise rates
2025.05.31 03:32EUR/GBP edges higher as German Retail Sales and Inflation data provide a mixed picture for the ECB
2025.05.31 02:09
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Canadian Dollar lurches higher on upbeat quarterly GDP growth
The Canadian Dollar (CAD) found some room on the top side on Friday, spurred higher by a better-than-expected print in Canadian Gross Domestic Product (GDP) growth figures for the first quarter.
New
2025.05.31 05:26USD/CHF Price Forecast: Flat as inflation cools, as US-China tensions rise
The USD/CHF trades subdued on Friday after a US report showed that inflation is approaching the Federal Reserve's (Fed) 2% goal. Meanwhile, US President Trump complains about the slow negotiations between Beijing and Washington, which have roiled the markets.
New
2025.05.31 05:11AUD/USD trades sideways as fundamental and technical factors weigh on price action
The Australian Dollar (AUD) is consolidating against the US Dollar on Friday as fresh domestic data and monetary policy expectations for the Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed) continue to drive price action.
New
2025.05.31 05:11EUR/USD holds steady as US PCE softens, trade tensions offset USD weakness
The Euro (EUR) remains steady against the US Dollar (USD) on Friday after a softer-than-expected US Personal Consumption Expenditures (PCE) Price Index, which was close to the Federal Reserve's (Fed) 2% goal, lifted the pair from daily lows of 1.1312.
New
2025.05.31 04:20Silver Price Forecast: XAG/USD plummets below $33.00 as Dollar rebounds, weekly losses near 2%
Silver price turned negative on Friday during the North American session, poised to end the week with losses of over 1.80% as the dollar staged a recovery during the day. XAG/USD trades at $32.87, down 1.29%.
New
2025.05.31 04:18EUR/JPY falls as Bank of Japan faces pressure to raise rates
The Euro (EUR) is coming under renewed pressure against the Japanese Yen (JPY) as investors weigh persistent inflation in Japan against soft consumer and inflation data from the Eurozone.
New
2025.05.31 03:32Dow Jones Industrial Average hobbled by renewed China trade tensions
The Dow Jones Industrial Average (DJIA) stumbled on Friday as investors continue to get pummeled with new trade concerns from the White House.
New
2025.05.31 03:17Gold price falls below $3,300 on strong US Dollar as Trump reignites China tensions
Gold price slumped on Friday as the US Dollar recovered some ground despite witnessing a drop in US Treasury bond yields following a strong inflation report, which keeps traders hopeful that the US Federal Reserve (Fed) will ease policy in 2025. XAU/USD trades at $3,289, down 0.83%.
2025.05.31 02:19EUR/GBP edges higher as German Retail Sales and Inflation data provide a mixed picture for the ECB
The Euro (EUR) is firming against the British Pound (GBP) on Friday, with EUR/GBP holding above the 100-day Simple Moving Average (SMA) near 0.8415.
2025.05.31 02:09US exceptionalism wanes as global investors pivot away - Rabobank
The concept of 'US exceptionalism' covers many specific themes. For academics it may have referred to the US's ability to attract bright minds from around the world and generate cutting edge research.
2025.05.31 00:24Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
