June 26, 2025 – Written by Tim Boyer

STORY LINK GBP/USD Forecast: Pound Sterling Price Ticks Higher to 1.371

The Pound US Dollar exchange rate (GBPUSD) traded without a clear direction on Wednesday amid a lack of both UK and US data releases.

The US Dollar (USD) regained some ground on Wednesday, recovering from losses earlier in the week that followed a ceasefire between Israel and Iran, a development that initially weighed on the safe-haven currency.

As market sentiment turned more neutral midweek, this helped stabilise demand for the ‘Greenback’.

Additional support came from Federal Reserve Chair Jerome Powell, who delivered testimony to Congress reaffirming the Fed’s cautious stance on interest rate cuts.

His pushback against political pressure to ease policy bolstered expectations that rates will remain higher for longer, offering a lift to USD exchange rates during Wednesday’s European session.

The Pound (GBP) lacked clear direction on Wednesday, trading sideways against the majority of its peers as a lull in UK economic data left markets with little to go on.

After benefiting earlier in the week from improved risk appetite, Sterling ran out of steam as sentiment cooled.

With no major UK releases to drive movement, investors showed little enthusiasm for extending positions in GBP.

As a result, the Pound remained stuck in a tight range, with limited momentum to break higher or lower during Wednesday’s European session.

Looking to Thursday’s European session, movement in the GBP/USD exchange rate is likely to be influenced by a flurry of key US economic releases.

Markets will dissect the latest US durable goods orders for May alongside the final estimate of Q1 GDP.

Orders for durable goods are expected to show a strong rebound, jumping from a sharp -6.3% to a robust 8.5% increase, potentially lending support to the US Dollar.

However, this may be offset by a disappointing GDP revision, with growth in the first quarter projected to be downgraded from 2.4% to -0.2%.

If these figures meet expectations, USD exchange rate movement could be choppy as traders weigh the conflicting signals.

On the UK side, attention will fall on the latest CBI distributive trades survey.

Although not typically a major market mover, a stronger-than-expected reading could help Sterling find some traction.

Additionally, remarks from Bank of England (BoE) policymakers, including Governor Andrew Bailey, could inject fresh volatility into GBP exchange rates.

Any hints that the BoE remains cautious about near-term rate cuts may provide a further lift to the Pound.

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TAGS: Pound Dollar Forecasts