Politics Weighs On Pound. Forecast as of 12.02.2026

When the Labour Party came to power, confidence in the pound sterling solidified. However, in 2026, the party's ratings are falling, and the market is abuzz with rumors of Keir Starmer's resignation. As a result, the GBP/USD pair is experiencing elevated volatility. Let's discuss this topic and make a trading plan.Major Takeaways The Bank of England may lower the repo rate in March. Keir Starmer's seat is shaking. The pound has come under double pressure from political developments and the BoE.