Ultima Markets

2026 British Pound outlook

GBP Outlook: Why the British Pound Retains Its Edge on Policy Divergence

The British Pound (GBP) has shown remarkable resilience in 2025. After surging more than 12 percent against the US Dollar to a three-year high, the currency faced a predictable pullback in November. However, the core drivers behind its strength remain firmly in place: a hawkish Bank of England (BoE) and a highly favorable yield differential

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