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 -16. and Fundamental Score for USD is 5. 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 Risk-OFF. The Switzerland Frank and United States Dollar recorded the strongest performance, while the Gold and Yen are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a -0.56% decrease against us dollar.
Euro "EUR", performance has been -0.03% down so far
Pond "GBP", performance has been -0.06% down as of now
Australian dollar "AUD", has dropped by -0.03%
New Zealand dollar "NZD", has dropped by -0.04%
Japanese YEN "JPY", experienced -0.07% fall
Swiss franc "CHF", experienced 0.02% rise so far
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 -58422 included 46459 long, 104881 short and 7093 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 7093 repositioning Indicates closed positions and short-term profit-taking.

USD COT (Commitments of Traders):

Institutions Net Position on >U.S. Dollar Index is 3617 included 20457 long, 16840 short and -76 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 -76 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 59% 41% 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 1.31250.
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 1.34399. Technically, If the pair continues to the upside, this resistance level could become a significant area to watch for sell entery potential.