GBP/USD Forecast & Price Predictions for 2024, 2025, 2026–2030 and Beyond | LiteFinance (2024)

The GBP/USD forecast reveals an optimistic stance for the British pound, bolstered by positive economic indicators and a relative weakening of the US dollar. With UK PMI data reflecting potential economic growth, the pound demonstrates resilience and an upward potential.

However, broader economic policies and global market shifts introduce uncertainty. Dive into the following article for a comprehensive understanding of the GBP/USD landscape, where nuanced analysis meets actionable insight, guiding you through one of the forex market's most intriguing currency pairs.

Highlights and Key Points: GBPUSD Forecast 2024-2030

• Current price today, 14.09.2024: Around 1.31218.
• The price forecast for the end of 2024 is between 1.248 and 1.347. WalletInvestor predicts a downward trend to 1.235.
• 2025 price predictions. LongForecast expects the pair to show high volatility and fluctuate within a wide range of 1.199 to 1.464. WalletInvestor assumes a bearish forecast, with the pair gradually declining to 1.199.
• Long-term 2027–2030 outlook: WalletInvestor suggests the pair's downward trajectory will continue through 2027, with the pair dropping to 1.124. LongForecast sees volatility persisting in 2028, and the pound will likely weaken against the greenback.

GBPUSD Price Today, in Coming Days and Week

When forecasting the GBP/USD exchange rate for the coming days and weeks, several crucial factors must be considered. Pay attention to economic indicators such as GDP growth, inflation, and employment data from both the UK and the US, as these heavily influence currency strength. Monitor central bank policies, especially interest rate decisions and monetary policy statements from the Bank of England and the Federal Reserve. Geopolitical events, including US-UK trade negotiations, can also impact the exchange rate. Additionally, market sentiment and risk appetite, reflected in global equity and bond markets, play a significant role in short-term currency movements.

Analysts’ GBP USD Projections for 2024

Let's take a look at GBPUSD's expert forecasts for 2024.

LongForecast

Price Range for 2024: 1.265–1.394 (as for June 4, 2024)

LongForecast predicts that the pound will strengthen against the US dollar throughout the year. Despite minor fluctuations in September, the British currency is expected to close the year at 1.347.

WalletInvestor

Price Range for 2024: $1.235–1.279 (as for June 4, 2024)

WalletInvestoranalysts suggest a bearish outlook for the GBP/USD pair in 2024, forecasting a decline to 1.235 from 1.272. The analysis indicates a steady downward trend, suggesting a weaker pound against the US dollar.

GBPUSD Technical Analysis

When analyzing the GBP/USD on a daily or higher time frame, technical analysis tools should be used to identify long-term trends and key levels.

For example, a candlestick chart, trend lines, and Fibonacci levels are the primary tools for determining price movement and support/resistance levels. Moving averages, MACD, and RSI are the most useful indicators for long-term analysis and identifying entry/exit points. Various chart patterns, such as "Double top" or "Double bottom," can help predict possible trend reversals. Combining these tools allows traders to make more informed decisions and improve their trading results.

GBPUSD Forecast For Next Three Months

To forecast the GBPUSD rate for the next three months, let's analyze the daily chart, using technical analysis tools such as Moving Averages (MA), the Relative Strength Index (RSI), and the Moving Averages Convergence/Divergence (MACD) indicator.

The price is trading above the 20-day moving average (MA20), indicating a short-term bullish trend. The pair is above the 50-day moving average (MA50), confirming a medium-term bullish trend. Finally, the price is also above the MA200 line, indicating a long-term upward trend.

The RSI is close to 67 in the overbought zone, confirming a strong uptrend. The MACD is above its signal line, indicating bullish momentum.

The GBP/USD pair has recently broken through the upper boundary of the "Ascending triangle," confirming the bullish sentiment and the possibility of further growth. The inverse "Head and shoulders" pattern points to the uptrend. The pair has broken through the neckline, suggesting an upward trend. The bullish trend is expected to continue to the target level of 1.27700. Meanwhile, a short-term pullback to 1.26500 is possible if the pair starts a correction.

Technical indicators confirm the bullish trend with the key support levels at 1.27000 and 1.26500. If the level of 1.27700 is broken through, further movement to 1.28500-1.29500 is possible. If correction occurs, key support levels will be 1.26500 and 1.26000.

Under favorable economic conditions, the GBPUSD pair may reach 1.30000 and higher. If the price drops below 1.26000 against negative news, it will likely decline to 1.25000.

Long-Term GBPUSD Technical Analysis for 2024

Let's analyze the GBP/USD pair on the weekly time frame (W1). The price is trading within an ascending channel, with the lower boundary supporting the trend at around 1.2200 and the upper boundary at 1.3000. A break of the upper boundary at 1.3000 could signal further upside, while a violation of the lower boundary at 1.2200 could signal the start of a downtrend.

The RSI is moving around 55-60, indicating a neutral trend with a bullish bias. A value above 70 would indicate an overbought market condition, and a value below 30 would indicate an oversold market. The MACD indicator is above the signal line and zero, confirming a rising trajectory. The Stochastic Oscillator is in the neutral zone, giving no clear overbought or oversold signals.

If GBP/USD breaks through and settles above 1.30000, it may hit the targets near 1.35000. The "Ascending triangle" pattern suggests that the GBP/USD rate can breach 1.30000.

Long-Term Trading Plan for GBPUSD

Based on the technical analysis, let's make a trading plan for the next three months and the rest of 2024.

Targets for 3 months:

• price level – 1.27700, order – Buy Stop, entry price – 1.27800 (above the resistance level), Take Profit – 1.28500, Stop Loss – 1.27000 (below the support level);
• price level – 1.26500 (on correction), order – Buy Limit, entry price – 1.26500, Take Profit – 1.27700, Stop Loss – 1.26000 (below the support level);
• price level – 1.28500–1.29500, order – Buy Stop, entry price – 1.28550 (above the resistance level), Take Profit – 1.29500, Stop Loss – 1.28000 (below the support level).

Targets for the year:

• Price level – 1.30000, order – Buy Stop, entry price – 1.30100, Take Profit – 1.35000, Stop Loss – 1.28000.

Analysts’ GBP USD Projections for 2025

Let's take a look at GBPUSD's expert forecasts for 2025.

LongForecast

Price Range for 2025: $1.314–1.444 (as for June 4, 2024)

LongForecast suggests a volatile year for GBPUSD, with an initial rate of 1.358, reaching 1.363 by August and closing at 1.416. The pound's journey is marked by fluctuations, reflecting economic updates and market dynamics.

WalletInvestor

Price Range for 2025: $1.205 – 1.238 (as for June 4, 2024)

Walletinvestorpredicts a bearish trend for the pound against the dollar in 2025, starting at 1.235 and decreasing to 1.198 by year's end. The forecast shows a gradual decline with brief recoveries, indicating a challenging year for the pound.

Analysts’ GBP USD Projections for 2026

Let's take a look at GBPUSD's expert forecasts for 2026.

WalletInvestor

Price Range for 2026: $1.161–1.204 (as for June 4, 2024)

Walletinvestor's forecast suggests a bearish outlook, with the pound potentially dropping to as low as 1.161 by year-end.

LongForecast

Price Range for 2026: $1.278–1.524 (as for June 4, 2024)

LongForecast predicts a year of volatility and general depreciation for the GBPUSD pair in 2026. The projected price range is expected to establish between 1.278 and 1.524. At the same time, the price may hit new lows. In December, the British pound is projected to drop to 1.297 against the US dollar.

Long-Term GBP USD Forecast for 2027-2030

Walletinvestor and LongForecast provide a bearish long-term outlook for the GBP/USD pair. Walletinvestor predicts a decrease from the current rate of 1.31218, with 2027 opening at 1.156 and closing at 1.1076, reflecting a steady decline. Analysts suggest a cautious approach to this pair due to its high-risk nature. LongForecast extends the timeline to 2028, showing volatility with a general downtrend. Their analysis indicates a slow decline from 1.221 in January 2027 to 1.298 in January 2028.

Both agencies agree on a weakening of the pound against the US dollar over the coming years, with variations in the rate demonstrating the currency's sensitivity to market changes. This consensus suggests cautious investment in GBP/USD amidst anticipated downward trends.

Recent Price History of the GBP USD Pair

The GBP/USD currency pair showcases a volatile journey through 2007–2023. Starting at a robust 2.00 in 2007, the pound-dollar trade experienced dramatic shifts, particularly in 2008, plunging to 1.46 (-26.26%) amid global economic turmoil.

A recovery ensued, peaking in 2014 at 1.72, but trends fluctuated with the UK's political and economic updates. Notably, 2016 marked a significant downturn to 1.23 (-16.05%) post-Brexit, reflecting investor risk aversion and a weaker pound. However, the pound gained marginal stability, oscillating around 1.20-1.37 between 2016 and 2023, influenced by Bank of England and Federal Reserve decisions.

Which Factors Impact GBP USD Price?

Let's take a closer look at the factors that influence the GBPUSD pair.

• Interest Rate Decisions (Bank of England & Federal Reserve): Changes in interest rates by the Bank of England or the Federal Reserve can lead to a pound or dollar forecast adjustment, affecting the GBPUSD pair as investors seek higher returns.
• Political Stability and Economic Performance: Political events or economic performance updates in the UK or US can lead to volatility in the pound sterling or US dollar, affecting the currency pair's trend.
• Trade and Investment Flows: The UK's trade balance and foreign investment levels can impact the strength of the British pound, while US trade policies can influence the dollar, affecting the GBPUSD exchange rate.
• Currency Market Dynamics: The GBPUSD, being one of the most widely traded currency pairs in the world, is affected by the broader forex market's dynamics, including trading volumes, liquidity, and the positions of major players.
• Central Bank Policies and Comments: Statements, policies, or forward guidance from the Bank of England or the Federal Reserve can lead to immediate reactions in the GBPUSD market as traders adjust their expectations for future interest rates.
• Relative Economic Performance: The relative strength of the UK economy compared to the US economy can influence investor sentiment towards the pound or dollar, affecting the pair's movement.

Conclusion: Is GBP/USD Still a Good Investment?

Based on technical analysis and forecasts, the GBP/USD currency pair is characterized by high volatility, carrying potential risks and offering ample trading opportunities. Despite the gradual weakening of the British pound, short-term currency fluctuations create favorable conditions for profit-taking. Analysts recommend considering the influence of economic news and exercising caution when trading this currency pair. For long-term investments, it is recommended to pay attention to other instruments.

Though forecasted downward, the pair retains adequate liquidity and relevance to warrant measured inclusion in diversified portfolios. Overall, the outlook is cautious but acknowledges the enduring significance of GBP/USD dynamics.

Price chart of GBPUSD in real time mode

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