Pound Declines Amid Weakening UK Economy. Forecast as of 18.06.2026

The weakness of the British economy and the reluctance of inflation to pick up allow the Bank of England to feel comfortable with current interest rates. The divergence in monetary policy with the Fed is supporting the GBP/USD bears. Let's analyze the situation and develop a trading plan.Major Takeaways The Bank of England will keep its repo rate at 3.75%. The likelihood of the BoE tightening monetary policy is declining. Political risks are weighing on the pound. Pullbacks in GBP/USD may provid