The market bias for GBP to PHP is currently bullish. Key drivers include a favorable interest rate differential as the Bank of England signals a slower pace of future rate cuts compared to the Bangko Sentral ng Pilipinas, which recently cut rates. Additionally, retail sales growth in the UK may support the Pound as economic activity stabilizes.
Over the next 1-3 months, expect the GBP to PHP trading range to remain stable but slightly elevated, potentially testing new highs near 80.
Upside risks stem from stronger than expected economic data in the UK, which may push the Pound higher. Conversely, a swift recovery in the Philippine economy or unexpected aggressive rate cuts by the BSP could exert downward pressure on the Peso against the Pound.