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 Strong Bullish.
Ziwox considering Strong Bearish bias for this asset and we expect prices to decline in the long-term.
mid-term Fundamental Score for GBP is -3. and Fundamental Score for USD is 15. So, base on the Fundamental Score, we predict mid-term downside price movement.

Market Overview & Performance

In the current trading session, "Sydney & Tokyo", Market risk sentiment is Mix. The New Zealand Dollar and Gold recorded the strongest performance, while the United States Dollar and Australian dollar are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a 0.08% increase against us dollar.
Euro "EUR", performance has been 0.03% up so far
Pond "GBP", performance has been 0.03% up as of now
Australian dollar "AUD", has risen by 0.01%
New Zealand dollar "NZD", has risen by 0.3%
Japanese YEN "JPY", experienced 0.02% rise
Swiss franc "CHF", experienced 0.03% rise so far
Canadian dollar "CAD", has gained 0.04%

Market Sentiment and Positioning

GBP COT (Commitments of Traders):

Institutions Net Position on >British Pound is -87903 included 44564 long, 132467 short and 14244 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 14244 repositioning Indicates closed positions and short-term profit-taking.

USD COT (Commitments of Traders):

Institutions Net Position on >U.S. Dollar Index is 13269 included 31921 long, 18652 short and 253 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 253 repositioning Indicates that they are optimistic about higher prices in mid-term.

Retail Traders:

Crowd traders or Retail traders are bullish on the GBPUSD with 56% 44% 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 1.33025.
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 1.34517. 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.