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 3.75%. Latest change was Dec 18, 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).


Based on the economic and macro fundamental data, The Fundamental Bias of GBP is Moderate Bearish and for the USD is Moderate Bullish.
Ziwox considering Moderate Bearish bias for this asset and we expect prices to decline in the long-term.
Our Ziwox A, mid-term Fundamental Score for GBP is 6. and Fundamental Score for USD is 25. So, base on the Fundamental Score, we predict mid-term downside price movement.

Market Overview & Performance

In the current trading session, "New York", Market risk sentiment is Mix. The Gold and Australian dollar recorded the strongest performance, while the British pound and Canadian Dollar are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a 0.23% increase against us dollar.
Euro "EUR", performance has been 0.06% up so far
Pond "GBP", performance has been -0.06% down as of now
Australian dollar "AUD", has risen by 0.18%
New Zealand dollar "NZD", has risen by 0.08%
Japanese YEN "JPY", experienced 0.09% rise
Swiss franc "CHF", experienced 0.12% rise so far
Canadian dollar "CAD", has lost -0.05%

Market Sentiment and Positioning

GBP COT (Commitments of Traders):

Institutions Net Position on >British Pound is -52039 included 63086 long, 115125 short and 2685 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 2685 repositioning Indicates closed positions and short-term profit-taking.

USD COT (Commitments of Traders):

Institutions Net Position on >U.S. Dollar Index is 4983 included 17617 long, 12634 short and -187 position changed from last week.
So they mainly have a bullish view on this asset and bought USD for higher prices in long-term.
Last week -187 repositioning Indicates closing positions, short-term profit-taking, or a general pessimism about prices.

Retail Traders:

Crowd traders or Retail traders are bullish on the GBPUSD with 39% 61% ratio. 0 long pos and 0 short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability GBPUSD prices may continue to rise.

Technical Levels and Support/Resistance

The GBPUSD pair is approaching a critical technical support level near 1.35107.
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 1.36447. 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.