Pound Slides Below 1.34 Before Bouncing Back, Analysts Predict Steady Quarter End

• September 26, 2025
• C Badenhorst
• 0 Comments

Recent GBP/USD Movements

On September 25, 2025 the pound fell to $1.3338, a 0.83% drop from the prior session. The decline was short‑lived; the next day the currency nudged up to $1.3345, marking a modest 0.07% gain. Over the last 30 days the pound has weakened by roughly 1.17%, hovering near a three‑month low.

Market participants point to a mix of factors behind the slide: tepid UK economic growth, lingering concerns over post‑Brexit trade arrangements, and a relatively hawkish stance from the Federal Reserve keeping the dollar attractive. Meanwhile, domestic inflation remains above the Bank of England’s target, prompting speculation that tighter monetary policy could further pressure the pound.

Outlook and Analyst Predictions

Despite the recent dip, many analysts expect the pair to stabilise around the 1.34 mark by the end of the quarter. Their models factor in projected UK GDP growth of 0.4% annualised and an anticipated pause in US rate hikes after the upcoming Federal Open Market Committee meeting. If the Bank of England holds rates steady, the pound could regain some footing, but any surprise data shock may push it back below 1.33.

Traders are also watching the upcoming UK budget and corporate earnings season for clues on fiscal policy and consumer demand. A stronger fiscal stance could boost confidence in the pound, while weaker corporate results may keep pressure on the currency. For now, the GBP/USD pair remains in a tight range, making it a focal point for short‑term forex strategies.