GBP/USD Price Forecast: Pound Moves Up Near 3-Year High as US Dollar Gets Weaker
The British Pound (GBP) is rising against the US Dollar (USD), with the GBP/USD pair touching around 1.3770 — the highest level since October 2021. This jump is mostly happening because the US Dollar is getting weaker, not because the UK economy is doing better.
The dollar dropped after news came out that Donald Trump, if he becomes President again, might remove the current US Federal Reserve chief, Jerome Powell. Also, recent US economic data has not been very strong, which made the dollar fall even more.
Even though the UK had good growth earlier in 2025, the latest numbers from the UK are not very strong. Still, the pound is going up because the dollar is under pressure. Now, traders are waiting for an important US inflation report (Core PCE) and new comments from the US central bank. These things could affect how interest rates move in the coming weeks.
Looking at charts, GBP/USD has crossed a strong level at 1.3750. If it stays above this, it may go higher. But if it falls below support levels, the price might come down. The Bank of England is also being careful about cutting rates, which is helping the pound.
Impact:
If the US Dollar stays weak, GBP/USD could keep rising. But upcoming US inflation news might cause a short-term drop.