Gbpusd Forecast Natwest

last updated on

Gbpusd Forecast Natwest

Gbp/Usd Will Touch 1.47 In 2026

The latest forecast from NatWest shows that GBP/USD will touch 1.47 by the end of Q3 2026. That's a very bullish forecast, given that the GBP/USD pair is trading in the 1.30 - 1.35 range.

The NatWest believes that the divergence between the US Federal Reserve and the BoE will only increase in the coming months. So, this supports the Pound against the US Dollar and will push the pair higher.

Three More Rate Cuts From The Us Fed In 2026

They also commented on how the BoE is expected to maintain a very cautious stance. Meanwhile, the US Fed is likely to cut the rates in order to save the economy and the labor market.

By February 2026, the bank believes that the interest rate in the UK will be 3.75%. But if the UK's labor market gets weaker, the rate would be aroound 3.5%.

As for the Federal Reserve, big changes are expected in 2026. With the new Fed chair, the US central bank will turn very dovish, which means we can expect a lot of rate cuts.

So, all of this development makes it clear that the investors will start to favor the Pound against the US Dollar. Once Powell's term ends in May, a new Fed chair will be appointed by the US president.

That's why NatWest believes that there will be 3 more rate cuts by the Federal Reserve in 2026. So, it's only natural for the US Dollar's yield support to vanish in the coming months.

Another factor highlighted by NetWest is the overvaluation of the US currency. They believe the US Dollar is overvalued and a healthy correction is warranted.

This forecast from NetWest means we can expect an upside of more than 1000 pips in the GBP/USD pair easily. And if that turns out to be true, it means the US Dollar will also lose ground against the Euro, Japanese Yen, and other currencies.

Trending Stories