Market Fundamental Analysis for June 26, 2026 GBPUSD
Sterling ends the week under pressure from renewed political uncertainty after Prime Minister Keir Starmer’s resignation. Investors are waiting for clearer signals on the new government and fiscal policy. Until then, concerns about UK public finances may limit demand for the pound.
The Bank of England kept rates at 3.75% on June 17. Inflation has eased, while the labour market is cooling. This reduces expectations of faster monetary tightening and limits support for sterling.
US inflation and consumer spending continue to support the dollar. GBP/USD may receive temporary support during periods of dollar weakness, but UK political and fiscal risks leave the pair vulnerable. The main scenario remains further downside until clearer signals emerge from the UK economy and government.
Trading idea: SELL 1.3185, SL 1.3210, TP 1.3110
