GBP/USD Price Forecast: At make or a break around 1.3500
Exchange Rates UK Research's latest August 2026 survey of major investment banks suggests the Pound to Euro exchange rate is trading above where most institutions believe it will settle over the medium term. With GBP/EUR currently at 1.1694, close to its highest level in more than a year, the majority of banks expect the exchange rate.
MUFG says the Bank of England's hawkish hold should keep Sterling supported, but Governor Bailey's pushback against imminent rate increases limits the scope for a sustained GBP/USD rally. The Pound to Dollar exchange rate (GBP/USD) ended July around 1.3482 after gaining 1.75% over the month and rebounding strongly from lows below.
The beginning of a new month marks a good opportunity to review the seasonal patterns that have influenced the forex market over the 50+ years since the Bretton Woods system was dismantled in 1971, ushering in the modern foreign exchange market.
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