The Pound Sets the Rules. Forecast as of 26.12.2025

The Christmas rally in US stock indices, investors' focus on positive signals from the UK economy, and a weaker US dollar are allowing GBP/USD bulls to stay in control. Let's discuss this and make a trading plan.Major Takeaways The UK economy is cooling. The Bank of England may cut the repo rate to 3%. The S&P 500 rally is supporting the pound. Buying GBP/USD above 1.35 remains relevant.Weekly Fundamental Forecast for Pound SterlingMarkets hear only what they want to hear. They brush aside n