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 1. and Fundamental Score for USD is 11. 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 Risk-OFF. The Gold and British pound recorded the strongest performance, while the New Zealand Dollar and EUR are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a 1.11% increase against us dollar.
Euro "EUR", performance has been -0.31% down so far
Pond "GBP", performance has been 0.28% up as of now
Australian dollar "AUD", has dropped by -0.03%
New Zealand dollar "NZD", has dropped by -0.39%
Japanese YEN "JPY", experienced -0.08% fall
Swiss franc "CHF", experienced -0.07% fall so far
Canadian dollar "CAD", has gained 0.08%
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 -71585 included 42043 long, 113628 short and -7372 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 -7372 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 13197 included 31180 long, 17983 short and 11813 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 11813 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 82% 18% 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 1.31090.
Technical trend is Sell, So If the pair continues to weaken, this support could become a significant area to watch for potential reversal or consolidation.
On the upside, there is key resistance near 1.33479. Technically, If the pair continues to the upside, this resistance level could become a significant area to watch for sell entery potential.