The GBPUSD pair dropped to 1.3472. UK inflation data will provide more clarity on the BoE’s policy outlook. Discover more in our analysis for 20 August 2025.
GBPUSD forecast: key trading points
- The GBPUSD pair remains in a downward phase amid expectations of signals from the Fed and BoE
- Market focus is on UK inflation statistics
- GBPUSD forecast for 20 August 2025: 1.3420
Fundamental analysis
The GBPUSD pair continues to move lower after a brief pause. Calm trading on Tuesday gave way to Wednesday’s doubts, with the price sliding to 1.3472.
The pound previously found support from expectations of a more hawkish Bank of England stance and strong macroeconomic data. Now, attention shifts to fresh UK inflation statistics due today. In July, consumer prices may accelerate to 3.7% for the headline reading and 4.8% for services inflation.
Rising prices could slow the pace of future BoE rate cuts, although weakness in the labour market complicates the outlook. At present, the regulator must balance between two signals: a soft labour market points to easing, while high inflation suggests a pause is needed.
The GBPUSD forecast is mixed.
GBPUSD technical analysis
The GBPUSD pair is correcting after recent growth, trading near 1.3472. Earlier, the pair failed to hold above 1.3565 and rolled back, coming under selling pressure. The nearest support level is at 1.3420, and a breakout could open the way towards 1.3340.
A rebound above 1.3565 would signal recovery and provide a chance to test resistance near 1.3595. For now, the pound remains in a downward phase, following the dollar’s dynamics and awaiting signals from the Federal Reserve.
Summary
The GBPUSD pair is edging lower after recent gains. The GBPUSD forecast for today, 20 August 2025, suggests a possible decline towards 1.3420.
Source: Roboforex