Sticky US inflation and diplomatic signals from the Trump-Xi summit boosted the Dollar. DXY reclaimed $99.13 rejecting its descending channel while EUR/USD held blue trendline support and GBP/USD broke lower below $1.341.
Monday delivered a near-perfect combination of developments for sterling bulls, triggering a sharp reversal in UK assets after last week's fiscal and political turmoil hammered the pound and sent long-end gilt yields surging to levels not seen since the 1990s. Calming remarks from Labour leadership candidate Andy Burnham on fiscal discipline, an IMF growth upgrade, hawkish rhetoric from Bank of England rate-setter Megan Greene and another Trump TACO combined to fuel a sharp reversal in GBP/USD alongside a modest retracement in long-end gilt yields.
Pound Sterling Price News and Forecast: GBP/USD rises as Burnham reassures, Starmer pressure mounts
The Pound to New Zealand Dollar (GBP/NZD) exchange rate traded sideways on Monday as easing political anxiety in the UK helped Sterling stabilise, while stronger New Zealand PMI data supported the ‘Kiwi'. At the time of writing, GBP/NZD was trading around NZ$2.2816, little changed on the day.
The Pound to Euro (GBP/EUR) exchange rate slumped to a five-week low last week as escalating political turmoil in Westminster overshadowed stronger UK economic data and rattled Sterling investors. At the time of writing, GBP/EUR was trading around €1.1482, down roughly 0.7% on the week.
Pound Sterling Price News and Forecast: GBP/USD falls to near 1.3300 amid UK political uncertainty
GBP/USD Price Forecast: Sees more downside below 1.3300
GBPUSD below 1.3485 which caused a further drop toward 1.3340-80. As we see over the chart, the market is facing a daily trend support around 1.3280 which could lead to a rebound with resistance around 1.3630.
Hotter April CPI combined with diplomatic developments from the Trump-Xi summit supported the US Dollar. EUR/USD faces pressure near $1.170 while GBP/USD defends rising channel floor at $1.351.
UK GDP grew by 0.6% in the first quarter of 2026, notably above the revised 0.2% reading recorded in the fourth quarter of 2025. The main contribution came from the services sector, which expanded by 0.8%.
Pound Sterling Price News and Forecast: GBP/USD attracts some sellers to around 1.3365
GBP/USD moved sharply lower on Thursday, validating the downside wedge risk highlighted earlier in the week as sterling finally starts reacting negatively to intensifying political turmoil in Britain. What had looked like a curious divergence between deteriorating UK political fundamentals and resilient pound price action now appears to be correcting rapidly, compounded by a simultaneous breakout in the dollar.