Pound to Dollar LIVE: 7th Consecutive Daily GBP Gain, "Momentum Remains Bullish"

April 16, 2025 - Written by David Woodsmith

STORY LINK Pound to Dollar LIVE: 7th Consecutive Daily GBP Gain, "Momentum Remains Bullish"

The Pound to Dollar exchange rate rallied on Wednesday, striking a new multi-month high at 1.32679 amid mounting uncertainty over US trade policy.

According to FX strategists at Scotiabank, "GBPUSD’s gains have extended for a seventh consecutive session and momentum remains bullish with an RSI near the overbought threshold at 70."

Looking ahead, with notable UK and US economic data in short supply, GBP/USD movement is likely to be driven by global sentiment in the second half of the week.

If investor confidence continues to deteriorate on the back of Trump’s erratic approach to trade policy, the US Dollar may remain under pressure.

However, any shift towards risk-off sentiment could allow the ‘Greenback’ to mount a recovery against the Pound.

Analysts at Scotiabank suggest 1.34 is in the crosshairs for near-term GBPUSD buyers.

"We look to near-term resistance around 1.33, and beyond that, the September high around 1.34. Near-term support is expected between 1.3220 and 1.32," says Eric Theoret, FX Strategist at Scotiabank.


The US Dollar struggled to find its footing on Wednesday as investor concerns surrounding Washington’s trade strategy continued to mount.

Conflicting signals from President Trump over new tariffs on Chinese electronics has left markets rattled. Initial suggestions that products like smartphones would be exempt were quickly contradicted by Trump himself, who posted on social media that no such exemptions would be made.

He also hinted at launching a fresh investigation into the electronics supply chain — a move that further deepened uncertainty around US trade policy.

As doubts grow over the coherence of Trump’s economic agenda, investors are pulling back from the US Dollar, with fears of a recession now fuelling speculation of rate cuts from the Federal Reserve in the coming months.

The Pound (GBP) trended broadly lower on Wednesday, following the release of weaker-than-expected UK inflation figures.

Data from the Office for National Statistics (ONS) showed headline inflation fell from 2.8% to 2.6% in March, missing expectations for a more modest decline.

Sterling slid as the weaker-than-expected inflation print was seen as all but confirming the Bank of England (BoE) will cut interest rates in May, with GBP investors also pricing up to two more cuts in the second half of 2025.


This is despite expectations that UK inflation will quickly accelerate again in the coming months amid global trade tensions and rising energy prices.

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TAGS: Pound Dollar Forecasts