Gbpusd Forecast

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Gbpusd Forecast

GBP/USD Forecast: BofA Has Set 1.45 Target For 2027

According to Bank of America, GBP/USD will be near 1.37 by the end of 2026. By next year, the GBP/USD pair will rise even further towards 1.45.

Both of these are bullish forecasts and highlight that BofA expects the GBP to strengthen against the USD. The target for the end of 2028 is set at 1.47.

GBP To Gain Ground Against USD

However, the bank added that it is better to wait as compared to chasing the move. The bank said that it is waiting to get more clarity on UK politics.

A look at the GBP shows that it is gaining ground against the US Dollar. However, it is losing against the commodity and high-yielding currencies.

As for the US Dollar, the bank thinks it will stay firm in the 2nd half of 2026. It also expects at least 3 more rate hikes from the US Federal Reserve.

However, even the rate hikes will only provide temporary support to the USD. The long-term view still favors the GBP against the USD.

Bank of America also added that the GBP/USD pair will experience more volatility as we approach the end of the year. So, the upside in the GBP/USD will not be a smooth directional move.

The Bank's forecast is clearly in favor of the GBP. The short-term might favor the USD, but the medium- to long-term trajectory is in the GBP's favor. A bullish GBP/USD pair means the USD is also set to lose against other currencies in 2027 and 2028.

If we look at the 5-year chart, it is clear that GBP/USD is at record highs. However, BofA thinks the pair is now set to cross the 1.40 resistance level next year. Beyond that, the bank believes the next stop for the GBP/USD will be 1.45. And by the end of 2028, the bank thinks the GBP/USD pair will cross that level and settle near 1.48.

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