The GBP USD exchange rate has surged to six month highs near 1 3300 before undergoing a correction. Nomura projects that the cautious approach from the Bank of England will persist, with an end 2026 forecast of 1 3500. However, aggressive US tariffs pose a threat, creating significant uncertainty that may lead to more pronounced currency fluctuations.

Traders should remain alert to the implications of monetary policies and geopolitical developments on currency movements. The Bank of England’s decisions will critically shape the GBP USD trajectory, particularly as external factors introduce additional volatility.