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GBP to USD 2026 Forecasts

Analysis of recent sterling → dollar forecasts for 2026. We collate forecasts from respected FX analysts together with the latest British pound to US dollar performance and trends.

 

The GBP to USD exchange rate is currently range-bound.

The key drivers include:

  • The Bank of England is expected to reduce interest rates to 3.25% by mid-2026 amid slowing inflation and growth, impacting the pound. The Federal Reserve may cut rates more cautiously, maintaining some dollar strength.
  • Improving global growth and rising commodity prices are likely to add volatility to the dollar’s performance.
  • Inflation in the UK is projected to peak around 4% before gradually declining, while U.S. inflation remains above 2%, affecting both currencies differently.

In the near term, the GBP/USD rate is expected to fluctuate within a stable range, reflecting current trading levels.

Risks that could affect this outlook include a significant improvement in U.S. economic performance, which could strengthen the dollar, and unexpected fiscal policy changes in the UK that may further weaken the pound.

GBP-USD Rate Calculator

 
   
   
   
   
 
   
 
 

GBP to USD Market Data

British pound (GBP) to US dollar (USD) market data - latest interbank exchange rate, trend, chart & historic rates.

 
Sell GBP   →   Buy USD
1 GBP =
1.3435We compare provider deals to this wholesale mid-market rate. Read more
USD
1d−0.2%
14dLows
GBP to USD is at 14-day lows near 1.3436, just 1.0% above its 3-month average of 1.3308, having traded in a very stable 4.0% range from 1.3019 to 1.3543
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Compare & Save - British pound to US dollar

Exchange rates can vary significantly between different currency exchange providers, so it's important to compare British pound (GBP) to US dollar (USD) rates from different sources before making a conversion.

Use our GBP to USD calculator to see how much you could save on your international money transfers. makes it easy to compare the Total Cost you are being charged on Sterling to Dollar currency rates and the possible savings of using various providers.

 
 

Will the British pound rise against the US dollar?

This is always a difficult question as exchange rates are influenced by many factors, so a good method to consider the British pound vs US dollar current value is to look the GBP/USD historic rate and change over a range of periods.

The following table looks at the change in the GBP to USD exchange rate over periods from the previous week back to the last 10 years.

DateGBP/USDChangePeriod
26 Dec 2025
1.3502
0.5% 2 Week
11 Oct 2025
1.3353
0.6% 3 Month
09 Jan 2025
1.2299
9.3% 1 Year
10 Jan 2021
1.3519
0.6% 5 Year
12 Jan 2016
1.4436
6.9% 10 Year
14 Jan 2006
1.7713
24.1% 20 Year
GBP/USD historic rates & change to 09-Jan-2026

It is almost impossible to predict what an exchange rate will do in the future, the best approach is to monitor the currency markets and transact when an exchange rate moves in your favour.

To help with this you can add GBP/USD to your personalised Rate Tracker to track and benefit from currency movements.

 
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Rather than requiring you to set a target rate, our Rate Alerts keep you informed of recent trends and movements of currency pairs.

Add rates to your Rate Tracker and select to receive an daily email (mon-fri) or when a rate is trending

 

Forecasts disclaimer: Please be advised that the forecasts and analysis of market data presented on BestExchangeRates.com are solely a review and compilation of forecasts from various market experts and economists. These forecasts are not meant to reflect the opinions or views of BestExchangeRates.com or its affiliates, nor should they be construed as a recommendation or advice to engage in any financial transactions. Read more