Forex forecasts 2026: market analysis & fx predictions for today

This would open up potential for growth towards 1.3920, although this scenario is currently considered less likely. The current momentum phase is aimed at reaching the key target level at 1.3698, where partial profit-taking and a slowdown in the downward move are expected. Overall, the fundamental backdrop for the current week is moderately bearish for the pair. The BoC maintains a more neutral tone, which reduces the USD risk premium and boosts corrective pressure in the USDCAD pair. The Canadian dollar retains relative resilience amid stabilising oil prices and reduced demand for safe-haven assets. The market continues to factor in the Fed’s hawkish rhetoric and uncertainty around the future path of US interest rates.

If the fp markets review 4,888 support level holds, the market will retain potential for further growth towards 4,950–5,000, with a consolidation range likely to form near these values. On the daily XAUUSD chart, the market confidently broke above the key level at 4,888, which previously acted as a supply zone. The current structure points to a distribution phase, where the market becomes sensitive to breakouts below key support levels. The Australian dollar maintains moderately positive momentum amid stabilising sentiment in global markets and recovering demand for risk assets.

Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. USD/JPY usually has a positive correlation is bitfinex legit with other pairs like USD/CHF and USD/CAD, as all three use the US Dollar as the base currency. In the USD/JPY pair, the US Dollar is the base currency and the Japanese Yen serves as the counter currency.

Four companies are set to decide the direction of the stock market this week, with guidance – not headline earnings – likely determining whether the AI rally continues or cracks. The Bank of Canada is widely expected to leave its benchmark rate unchanged at 2.25% at Wednesday’s meeting, extending the pause it signalled back in December. All eyes will be on the US Federal Reserve interest rate decision due later on Wednesday. The pair retraces from a five-year high amid renewed US Dollar demand.

• On the domestic front, the focus remains on the Federal Reserve’s policy announcement scheduled for Wednesday.
• (The technical analysis of this story was written with the help of an AI tool.)
• From a technical point of view, the GBP/USD pair faces further downside after breaking below the 18-month rising wedge support at 1.2682, with the RSI in negative territory.
• From the UK side, the market continues to factor in the Bank of England’s hawkish rhetoric.
• The forecast is also based on interest rates, commodity prices and economic indicators.
• For now, however, amid global economic instability, any signal from the Fed or the BoE regarding possible rate changes could trigger increased volatility in the GBPUSD rate.

Pound Sterling Price News and Forecast: GBP gains against US Dollar at start of Fed policy week

At the same time, the strengthening US dollar and uncertainty regarding the pace of the global economic recovery are restraining the development of a more aggressive bullish momentum. Brent prices continue to receive support from sustained supply control by OPEC+ and expectations of a seasonal increase in demand from oil refineries ahead of the spring period. After reaching the 5,000 zone, a corrective leg is possible, with a potential pullback towards 4,888, representing a retest of the broken level from above. After the breakout, prices received confirmed support from above and continued an impulsive growth wave. Any corrective moves during the current week are viewed as technical and potentially limited. At the same time, the US dollar index is losing momentum, which provides additional support for XAUUSD

GBPUSD forecast: key takeaways

To learn more about how this forecast is produced, please see our methodology page. Pound versus the U.S. dollar (GBP/USD) broken down by month. Below is a forecast of U.K. As a leveraged product losses are able to exceed initial deposits and capital is at risk.

Pound Sterling Price Today

The information on this website is general in nature, so you must consider the information in light of your objectives, financial situation and needs. You should consider whether you can afford to take the high risk of losing your money. 68% of retail investor accounts lose money when trading CFDs with this provider. At the same time, tensions between the US and Europe over Greenland added to volatility in the risk premium. On the US side, “good” data didn’t translate into a stronger dollar because geopolitics dominated.

For the latest updates and forecasts on GBP/USD, consult reliable sources and market analysis reports to make informed trading decisions The most active trading sessions for the GBP/USD currency pair occur in London and New York, with some activity during Asian markets from 2400 GMT to 0900 GMT.. Our experts make a GBP/USD update forecasting the possible moves of the pound-dollar pair during the whole year.

This chart shows vs history up to Today and a forward path built from quarterly checkpoints. Quarterly Pound projections against the Dollar are drawn from aggregated bank research, prevailing market expectations, and our Sentiment Survey. Select market data provided by ICE Data Services. You should consider whether you understand how CFDs and Forex work and whether you can afford to take the high risk of losing your money. CFDs and Forex are complex instruments and come with a high risk of losing money. Examples of transactions on the basis of forex forecasts.

The USD/JPY (US Dollar Japanese Yen) currency pair is one of the ‘Majors’, a group of the most important currency pairs in the world. It accounts for more than half of the total trading volume in the Forex market, making gaps almost inexistent, let alone sudden reversals caused by breakaway gaps. As a closely watched and widely traded currency pair, it features the British Pound as the base currency and the US Dollar as the counter currency. The GBP/USD (or Pound Dollar) currency pair belongs to the group of ‘Majors’, referring to the most important and widely traded pairs in the world. The FOMC Minutes, which are released by the Board of Governors of the Federal Reserve weeks after the latest meeting, are a guide to the future US interest-rate policy. Our experts make weekly updates forecasting the next possible moves of the Pound-Dollar pair.

GBP/USD Weekly Forecast: Extends Weakness Amid Resilient US Data

The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. (The technical analysis of this story was written with the help of an AI okcoin review tool.) In the daily chart, GBP/USD holds well above the rising 100-day EMA at 1.3385, maintaining a firm bullish bias.

From a technical point of view, the GBP/USD pair faces further downside after breaking below the 18-month rising wedge support at 1.2682, with the RSI in negative territory. After the correction is completed, a resumption of the bullish impulse is expected with a target at the 68.85 level. After a minor correction is completed, a resumption of an aggressive bullish impulse is expected with a target at the 5,405 level. Today, 28 January 2026, a moderate corrective move towards this level is likely. On the 2-hour chart, price remains above a rising trendline from the mid-January lows, keeping the broader structure constructive despite near-term hesitation.

The overall structure still shows signs of an uptrend, but price trading near multi-year highs increases the risks of volatile pullbacks and profit-taking. On the daily USDJPY chart, the market found support in the 158.30–158.36 area, after which a new upward wave began to form. The market prices in the persistence of negative real rates and limited scope for the regulator to tighten conditions, which continues to weigh on the JPY. Market participants are primarily focused on the risks of a possible US government shutdown in January, which increases dollar volatility and supports demand for alternative currencies.

GBP/USD stays in red near 1.3800, as focus shifts to Fed verdict

It is a sentiment indicator which delivers actionable price levels, not merely “mood” or “positioning” indications. The Forecast Poll is a sentiment tool that highlights near and medium-term price expectations from leading market experts. This enables the comparison between the average forecast price and the effective close price. Nothing on this website is an endorsement or recommendation of a particular trading strategy or investment decision. He’s well-known for his day trading reviews and multiple timeframe analysis. The author has great exposure to different financial markets and institutions.

Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. In the UK, inflation re-accelerated as CPI rose 3.4% YoY in December (from 3.2%), which typically reduces the market’s confidence in rapid BoE easing and helped GBP on the day by lifting front-end UK yields. Currency trading on margin involves high risk, and is not suitable for all investors. The British pound has been pretty choppy during the Monday session as we continue to hover around the 1.35 level.

• Despite these gains, many factors are putting downward pressure on the dollar.
• Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
• The Japanese Yen, known for its low interest rate, is frequently used in carry trades, making it one of the most traded currencies worldwide.
• The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England.
• An additional signal in favor of the British Pound’s rise will be a test of the support line on the relative strength indicator.
• If the risks involved seem unclear to you, please apply to an outside specialist for independent advice.
• Any hawkish remarks from Fed officials could underpin the Greenback and act as a headwind for the major pair.

RSI has eased slightly from overbought levels but remains near 65, consistent with a healthy pause. Fibonacci retracement of the $1.3400–$1.3680 rally highlights first support at $1.3615 (0.236), followed by $1.3573 (0.382) and $1.3540 (0.5). Unless DXY reclaims $97.70, any rebound is likely corrective, keeping downside risks dominant in the near term. Price has also slipped under the $97.70–$97.80 support zone and the 50-day moving average, confirming a bearish momentum shift. The Fed is widely expected to keep interest rates unchanged in the range of 3.50%-3.75%. On the domestic front, the focus remains on the Federal Reserve’s policy announcement scheduled for Wednesday.