GBPUSD Analysis

Introduction

The GBP/USD, also known as “Cable,” is another major pair, reflecting the economic relationship between the UK and the US. The price of the pair is driven by the Bank of England’s (BoE) monetary policy, as well as political events like Brexit. The GBP/USD is highly sensitive to changes in UK economic data (inflation, GDP) and US economic performance. It tends to move in line with global risk sentiment, with a tendency for volatility during UK political events. This pair also shows a strong correlation with EUR/USD.

Fundamentals and Interest Rates

The Bank of England policy is Dovish with the (BOE) current Interest rate 4%. Latest change was Aug 07, 2025 (-25bp)%.
On that side the Federal Reserve policy is Dovish and (FED) has set its interest rate to 3.75% by latest change, Dec 10, 2025 (-25bp).
(BOE) Higher interest rates generally lead to higher returns on investments denominated in GBP. This tends to attract foreign capital into GBP assets.

Based on the economic and macro fundamental data, The Fundamental Bias of GBP is Weak Bullish and for the USD is -- Neutral.
Ziwox considering Weak Bullish bias for this asset and we anticipate long-term price increases.
Our Ziwox A, mid-term Fundamental Score for GBP is -9. and Fundamental Score for USD is -11. So, base on the Fundamental Score, we predict mid-term upside price movement.

Market Overview & Performance

In the current trading session, "Sydney & Tokyo", Market risk sentiment is Classic Risk-OFF. The Gold and Switzerland Frank recorded the strongest performance, while the New Zealand Dollar and Australian dollar are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a 0.27% increase against us dollar.
Euro "EUR", performance has been -0.01% down so far
Pond "GBP", performance has been -0.09% down as of now
Australian dollar "AUD", has dropped by -0.22%
New Zealand dollar "NZD", has dropped by -0.31%
Japanese YEN "JPY", experienced 0.01% rise
Swiss franc "CHF", experienced 0.03% rise so far
Canadian dollar "CAD", has lost -0.04%
Market risk sentiment is OFF, Investors seek safety, favoring safe-haven currencies and assets while selling off riskier investments.Due to the market risk sentiment, GBPUSD price reduction is likely. Becasue investors become risk-averse from GBP, seeking safety amid uncertainty or market turmoil, leading to a sell-off in riskier assets and a flight to safe havens like the USD, JPY, and gold. Currencies tied to riskier economies (e.g., AUD, NZD) tend to weaken.

Market Sentiment and Positioning

GBP COT (Commitments of Traders):

Institutions Net Position on >British Pound is -93221 included 45257 long, 138478 short and -13964 position changed from last week.
So they mainly have a bearish view on this asset and sold GBP for lower prices in long-term.
Last week -13964 repositioning Indicates more sell positions and price pressure in short-term.

USD COT (Commitments of Traders):

Institutions Net Position on >U.S. Dollar Index is -16347 included 18448 long, 34795 short and -239 position changed from last week.
So they mainly have a bearish view on this asset and sold USD for lower prices in long-term.
Last week -239 repositioning Indicates more sell positions and price pressure in short-term.

Retail Traders:

Crowd traders or Retail traders are bullish on the GBPUSD with 55% 45% ratio. 0 long pos and 0 short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability GBPUSD prices may decrease.

Technical Levels and Support/Resistance

The GBPUSD pair is approaching a critical technical support level near 1.32682.
Technical trend is BUY, If the pair continues to weaken, this support could become a good area to enter a long positions.
On the upside, there is key resistance near 1.34874. Technically, A break above this resistance could signal a shift in momentum, but need to get a confirmation in this area due to the reversal or correction potential.