Sterling (GBP/USD) remains trapped in an 80-90 pip range against the United States Dollar, with repeated failures to close above 1.2675 keeping sentiment mixed. Attempts to push higher have been met with resistance, and without a decisive break, the upside looks limited
This week, UK Prime Minister Keir Starmer heads to Washington to meet Donald Trump. With Britain committing to increased defence spending by 2027, the visit could produce positive headlines. Still, broader economic concerns weigh on the pound, making sustained gains above 1.2675 unlikely.
While the UK is seen as a relative outperformer in a trade war, EUR/GBP risks remain tilted lower in the short term. That said, the domestic picture is far from strong. Unless GBP/USD clears and holds above 1.2675, a move lower looks more probable.
