**GBP/USD Weekly Forecast (19th to 24th October 2025)
By: DailyForex.com Analyst**
*Credit: This analysis is inspired by content from DailyForex.com’s “GBP/USD Weekly Forecast 19th to 24th October 2025.”*
## Introduction
The GBP/USD currency pair, often regarded as the “Cable,” is one of the most widely traded pairs in the forex market. As we approach the week of October 19th to 24th, 2025, traders and investors are keenly observing the dynamics between the British Pound and the US Dollar. This weekly forecast will analyse technical and fundamental factors, key support and resistance levels, macroeconomic developments, and offer a forecast for the upcoming week.
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## Market Recap: GBP/USD Performance (Previous Week)
Over the past week, GBP/USD has witnessed heightened volatility due to a combination of US economic data releases, central bank commentary, and ongoing geopolitical influences. The pair fluctuated within a defined range, struggling to break out amid mixed signals from both the UK and US economies.
Notable factors include:
– Mixed inflation readings in both the UK and the US
– Continued speculation regarding policy direction from the Bank of England (BoE) and the Federal Reserve (Fed)
– Ongoing Brexit-related trade negotiations and concerns about the UK’s economic trajectory post-Brexit
– Shifting risk sentiment, with global events influencing safe haven flows in the US Dollar
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## Technical Analysis
### Daily Chart Perspective
The GBP/USD daily chart reveals that the pair has attempted to recover from September lows but is yet to establish a definitive bullish or bearish momentum. Important technical patterns and trends observed include:
**Moving Averages**
– The 50-day Simple Moving Average (SMA) is currently acting as dynamic resistance. Price action hovers near this level, indicating an inflection point.
– The 200-day SMA is further above, providing a longer-term resistance area.
– The 20-day Exponential Moving Average (EMA) shows short-term momentum, with the price oscillating around it.
**Trend Lines and Chart Patterns**
– A descending trendline from the August highs continues to exert downward pressure.
– The formation of a potential symmetrical triangle pattern suggests the market is awaiting a breakout.
**Support and Resistance Areas**
– Immediate support lies near 1.2150, a level validated multiple times in recent sessions.
– Psychological resistance is present at 1.2300, with further resistance at 1.2450 and 1.2600.
### Weekly Chart Perspective
On the weekly time frame, the price action outlines a consolidation phase after a sharp decline earlier in the quarter. There are signs of potential basing as the momentum indicators start to flatten, hinting at temporary equilibrium between buyers and sellers.
**Key Observations:**
– RSI (Relative Strength Index) on the weekly chart moves close to the 40 level, suggesting bearish, but not oversold, conditions.
– MACD (Moving Average Convergence Divergence) histogram remains slightly negative, but the moving averages are converging, which typically precedes a period of breakout volatility.
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## Fundamental Analysis
### UK Economic Environment
**Inflation and Growth Concerns**
Inflation in the UK has moderated compared to previous months but remains above the BoE’s target. This has heightened concerns over the central bank’s next monetary policy move, especially as wage growth slows and consumer spending shows signs of fatigue amid higher living costs.
**Bank of England’s Stance**
The BoE has adopted a cautious approach, holding rates steady at the last meeting. However, policymakers remain vigilant about persistent inflation and sluggish economic growth. Market participants are speculating on potential rate cuts in 2026, contingent on inflationary pressures and broader macroeconomic developments.
**Brexit and Trade Negotiations**
Trade negotiations between the UK and European Union continue to introduce uncertainty. The lack of concrete progress
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