Wells Fargo Gbpusd Forecast

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Wells Fargo Gbpusd Forecast

Wells Fargo Gbp/Usd Forecast For 2026

Amidst the changing interest rates, tariff wars, and inflation concerns, Wells Fargo has issued their forecast for the GBP/USD. According to them, GBP/USD will drop towards the 1.3000 handle by the end of 2026.

As for the 2025-end forecast for the GBP/USD, Wells Fargo has issued a target of 1.3700. According to them, the GBP/USD will rise higher during the rest of 2025 as the Federal Reserve will start to cut the rates.

Gbp/Usd To Weaken In 2026

However, the GBP/USD pair will turn bearish once again in the year 2026 with a target of 1.3000. So, the medium-term outlook for the GBP/USD is bullish as the US Dollar will retreat lower due to economic conditions.

According to Wells Fargo, the US economy will also slow down as the monetary policy remains restrictive. They also added that the US Federal Reserve will cut rates at least 3 times before the end of 2025.

So, once the 3 rate cuts are delivered, the US economy will take a U-Turn and start to grow positively. Once that happens, the effect will be seen in the form of a bearish GBP/USD.

The banks expect a rebound in the US economy in the year 2025. They also believe that the impact of trade tariffs on the US economy will fade by then.

As for the rate cuts in the year 2026, Wells Fargo believes that the Fed will not go down that rate again. So, we can expect a stronger Dollar against the GBP, EUR, and other currencies in 2026.

However, this forecast could change given the higher degree of uncertainty regarding the US policies. However, all of these will only have a minimal impact on the strength of the US Dollar.

On the other hand, Wells Fargo has forecasted that the BoE will make 2 more rate cuts by the 2025 end. In the year 2026, the Bank of England is also expected to cut rates at least once.

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