GBPUSD Analysis

Introduction

The GBP/USD, also known as “Cable,” is another major pair, reflecting the economic relationship between the UK and the US. The price of the pair is driven by the Bank of England’s (BoE) monetary policy, as well as political events like Brexit. The GBP/USD is highly sensitive to changes in UK economic data (inflation, GDP) and US economic performance. It tends to move in line with global risk sentiment, with a tendency for volatility during UK political events. This pair also shows a strong correlation with EUR/USD.

Fundamentals and Interest Rates

The Bank of England policy is Dovish with the (BOE) current Interest rate 4%. Latest change was Aug 07, 2025 (-25bp)%.
On that side the Federal Reserve policy is Dovish and (FED) has set its interest rate to 4% by latest change, Oct 29, 2025 (-25bp).


Based on the economic and macro fundamental data, The Fundamental Bias of GBP is Weak Bullish and for the USD is -- Neutral.
Ziwox considering Weak Bullish bias for this asset and we anticipate long-term price increases.
Our Ziwox A, mid-term Fundamental Score for GBP is 1. and Fundamental Score for USD is -4. So, base on the Fundamental Score, we predict mid-term upside price movement.

Market Overview & Performance

In the current trading session, "Sydney & Tokyo", Market risk sentiment is Classic Risk-OFF. The Yen and United States Dollar recorded the strongest performance, while the Gold and New Zealand Dollar are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a -0.43% decrease against us dollar.
Euro "EUR", performance has been -0.01% down so far
Pond "GBP", performance has been -0.02% down as of now
Australian dollar "AUD", has dropped by -0.06%
New Zealand dollar "NZD", has dropped by -0.09%
Japanese YEN "JPY", experienced 0.05% rise
Market risk sentiment is OFF, Investors seek safety, favoring safe-haven currencies and assets while selling off riskier investments.Due to the market risk sentiment, GBPUSD price reduction is likely. Becasue investors become risk-averse from GBP, seeking safety amid uncertainty or market turmoil, leading to a sell-off in riskier assets and a flight to safe havens like the USD, JPY, and gold. Currencies tied to riskier economies (e.g., AUD, NZD) tend to weaken.

Market Sentiment and Positioning

GBP COT (Commitments of Traders):

Institutions Net Position on >British Pound is -1964 included 84500 long, 86464 short and 4616 position changed from last week.
So they mainly have a bearish view on this asset and sold GBP for lower prices in long-term.
Last week 4616 repositioning Indicates closed positions and short-term profit-taking.

USD COT (Commitments of Traders):

Institutions Net Position on >U.S. Dollar Index is -10344 included 14032 long, 24376 short and 2550 position changed from last week.
So they mainly have a bearish view on this asset and sold USD for lower prices in long-term.
Last week 2550 repositioning Indicates closed positions and short-term profit-taking.

Retail Traders:

Crowd traders or Retail traders are bullish on the GBPUSD with 75% 25% ratio. 28519 long pos and 11791 short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability GBPUSD prices may decrease.

Technical Levels and Support/Resistance

The GBPUSD pair is approaching a critical technical support level near 1.30771.
Technical trend is Sell, So If the pair continues to weaken, this support could become a significant area to watch for potential reversal or consolidation.
On the upside, there is key resistance near 1.32801. Technically, If the pair continues to the upside, this resistance level could become a significant area to watch for sell entery potential.