Boa Gbpusd Forecast

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Boa Gbpusd Forecast

Bank Of America'S Gbp/Usd Forecast For End 2026

According to Bank of America, the GBP/USD pair will be near 1.45 handle by the end of 2026. This is a very bullish forecast for the Pound to Dollar pair and shows the bank is very optimistic about the GBP.

quick look at the GBP/USD pair shows that the long-term support is found at 1.30. Similarly, the 1.40 handle will continue to serve as a solid resistance level for the GBP bulls.

Us Federal Reserve To Cut Rates Aggressively

But as per the BoA's forecast, the GBP/USD will continue to rise and end the year 2026 near the 1.45 level. This forecast means the US Dollar will remain on the back foot and the US Federal Reserve will likely go through multiple rate cuts.

Overall, the year 2026 will result in further dollar losses across the board. Meanwhile, a net recovery in the Pound will be seen in the global markets.

Bank of America has issued a very bearish outlook for the US Dollar across the board. So, if the USD loses ground against the GBP, then we can expect a similar play in EUR, JPY, and other currency pairs.

BoA added that the Fed policy in 2026 will continue to be a key element for the currency markets. At the very minimum, the new Fed chair is likely to adopt a more dovish policy.

In addition, BoA is also anticipating the Fed to go through a radical policy shift. In simple words, BoA believes that the Fed will go ahead with sharper rate declines in 2026.

So, if the Fed turns more dovish, then it will obviously hurt the US Dollar. And the inflation level will also continue to have an impact on the Fed's policy decision.

As for the Bank of England, the BoA believes the central bank is unlikely to cut the rates any further. So, that's something which will support the GBP against the USD.

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