
British Pound Forecast: GBP/USD Four-Week Rally Nears a Critical Hurdle 8 18 2026
GBP/USD is pressing fresh multi-month highs as the rally approaches a technical barrier that could test the durability of the Sterling recovery.
Stay in step with market opportunities and get insights, actionable trade ideas and dedicated support.

GBP/USD is pressing fresh multi-month highs as the rally approaches a technical barrier that could test the durability of the Sterling recovery.

Sterling has recovered sharply from the recent lows, but buyers are returning to a zone that triggered the last major reversal. GBP/USD battle lines drawn.

A sharp rebound has eased downside pressure, but the bigger battle for trend control still lies ahead.

The GBP/USD climbed back above the 1.35 handle on Friday, thanks to a weaker US jobs report which all but cemented expectations that the Federal Reserve will cut interest rates in a couple of weeks’ time. The GBP/USD outlook will be put to the test again next week with the release of more US data, including inflation numbers, while from the UK we will get a monthly update on GDP.

With inflation data to come from both the UK and US this week, the GBP/USD outlook will be put for a big test.