Sterling Pulls Back from Multi-Year High, But Outlook Remains Bullish

Sterling Retreats, But Analysts Expect GBP/USD to Rally Toward 1.40

The British Pound (GBP) retreated from its recent three-year high of $1.3594 against the US Dollar (USD) but remains firmly supported by favorable market fundamentals. Currently trading flat at $1.3465, analysts at Convera believe Sterling’s outlook is still bullish.

According to George Vessey of Convera, a temporary rebound in the US Dollar—spurred by a federal court ruling blocking President Trump's tariffs—may not last. Instead, he says, political risk premium in the US could grow, pushing investors away from dollar-denominated assets.

“As doubts over the ruling grow, the ‘sell America’ trade may regain momentum,” Vessey notes.

UK Macro Support Strengthens GBP

The Bank of England’s (BoE) resistance to immediate rate cuts, combined with strong UK economic data and favorable trade developments, supports the British Pound’s resilience. Vessey suggests that GBP/USD may even hit the 1.40 level by year-end, especially if investors shift away from USD assets amid US political and policy uncertainty.

Internal Links (Tredu.com-Style):

• GBP/USD Technical Analysis
• How UK Economic Data Moves the Pound
• Impact of US Tariff Rulings on USD