Pound to Dollar Price Forecast: "GBP Could Rise to 1.3575" says Bank

July 24, 2025 - Written by David Woodsmith

STORY LINK Pound to Dollar Price Forecast: "GBP Could Rise to 1.3575" says Bank

The Pound to Dollar exchange rate (GBP/USD) surged above the 1.3500 level on Tuesday amid a wider dollar sell-off.

GBP/USD advanced further to 10-day highs near 1.3550 on Wednesday with the Pound secured an element of net support in global markets.

According to UoB; “From here, a clear break above 1.3535 would indicate that GBP could rise to 1.3575.”

It added; “The likelihood of GBP breaking clearly above 1.3535 will remain intact as long as the ‘strong support’ level, currently at 1.3455, is not breached.”

Scotiabank commented; “the multi-month bull trend looks to have resumed as we note a break back above the 50 day MA (1.3524) trend level. The latest pullback confirmed support in the upper-1.33s, offering a local double bottom that left the broader bull trend intact.”

It added; “We look to a near term range bound between 1.3500 support and 1.3580 resistance.”

The framework US-Japan trade deal was announced overnight which helped underpin global risk appetite and equities made net gains amid hopes of wider progress on trade talks.


According to ING; “Equity markets globally are rallying on the view that deals reduce uncertainty.”

Industrial commodities posted net gains which provided an additional boost to the FTSE 100 index which posted a fresh record high during the session.

Saxo’s Neil Wilson commented; “It’s unclear right now if the positive news on the Japan trade deal means anything material for Europe striking a trade deal with the US – you would think that it does."

The gains in equities helped underpin the Pound in global markets.

The dollar overall remained on the defensive in global markets with the currency index just below 97.5 and close to 2-week lows.

Scotiabank commented; “Yesterday’s technical break under support around the 98 level maintains focus on the downside and short-term charts look technically bearish which may mean renewed intraday pressure on yesterday’s low and support around 97.30/35.”

Markets remain concerned that the Federal Reserve will remain under strong political pressure to cut interest rates.


There are also still concerns that the Administration will look to manipulate Fed appointments to gain greater control or find some pretext to dismiss Powell.

According to Danske Bank; “Fundamentally, the case for ‘US exceptionalism’ is fading, leaving the greenback increasingly exposed.”

As far as domestic developments are concerned, there are strong expectations that the Bank of England will cut interest rates at the early-August meeting.

There is still a lively debate over the medium-term trend.

According to Bank of America (BoA); “we no longer forecast a small acceleration in cuts in H2 and expect the BoE to stick to a quarterly cutting path until early 2026. We expect two cuts this year rather than three and a final cut in February 2026. Our terminal remains unchanged at 3.5%.”

BoA maintains a positive stance on the Pound; "We feel the conditions are now in place for a bounce in GBP through the summer months.”

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TAGS: Pound Dollar Forecasts