The GBP/USD currency pair continues to move within a developing correction and bullish channel. At the time of publication of this forecast, the GBP/USD exchange rate on Forex is 1.3422. Moving averages indicate a short-term bullish trend. Prices have broken above the area between the signal lines, indicating upward pressure from buyers of the currency pair and potential continued growth. Currently, we expect an attempt to develop a correction in the British Pound against the US Dollar exchange rate and a test of the resistance area near 1.3425. From there, we expect another downward rebound and a continued decline in the British Pound against the US Dollar currency pair. The target for the pair’s decline, as per the Forex forecast, is the area around 1.3105.
GBP/USD Forecast and Analysis for December 16, 2025
An additional signal for a decline in the currency pair will be a test of the trend line on the relative strength indicator (RSI). A second signal for a decline will be a break of the lower boundary of the bullish channel. A strong rally and a break of the resistance area with a price consolidation above 1.3505 would cancel out the downward scenario for the GBP/USD pair. This would indicate a break of the resistance level and continued growth of the GBP/USD pair towards 1.3745. Confirmation of the pair’s decline should be expected with a break of the support area and a price close below 1.3245, which would indicate a break of the lower boundary of the bullish channel.
GBP/USD Forecast and Analysis for December 16, 2025 suggests an attempt to develop a bullish correction and a test of the resistance area near 1.3425. Then, a continued decline in quotes with a target near 1.3105 is expected. A test of the resistance line on the relative strength indicator (RSI) will be an additional signal for a decline in the British pound. A strong rise in the British pound against the US dollar and a breakout of 1.3505 will cancel out this downward trend. This will indicate a continued rally in the Forex pair with a potential target above 1.3745.
