UBS maintains a bullish stance on GBP/USD, citing:
Continued dollar vulnerability due to fiscal risks.
Structural support for the Pound from trade and monetary policy dynamics.
Potential pullbacks to 1.3390 as buying opportunities before a push toward 1.38.
Final Thoughts
With the US dollar struggling amid fiscal uncertainty and the Pound holding strong, GBP/USD could extend gains toward 1.38 in the coming months. Traders should watch for:
US debt ceiling and budget debates – Further political risks could weaken USD.
Bank of England rate decisions – Faster cuts could limit GBP upside.
Global risk sentiment – A shift to risk-off trading may temporarily boost the dollar.
For now, the path of least resistance favors the Pound, keeping the 1.38 target in play.
