GBP to USD Forecast - December 2025
If you're planning to send British pounds (GBP) to the US this coming month (December 2025), here’s what you need to know in plain, simple terms.
The British pound has been relatively strong lately, but not necessarily because the UK economy is performing well. Most of the strength comes from the recent weakness in the U.S. dollar.
Think of it this way, the pound looks strong in comparison to a struggling dollar. But when measured against other major currencies like the euro, its performance is less impressive.
That suggests the pound's strength may not last indefinitely.
GBP/USD is currently trading at 1.35
Search Now & Save On Your Transfer
What is likely to happen to GBP/USD in December 2025
Expect GBP to USD to stay mostly between 1.300 and 1.340 next month. The pound has mild upward momentum, but economic softness and political risks are holding it back. Watching the UK budget and central bank updates will be key.
GBP to USD: Where It Stands
GBP to USD is trading around the mid 1.31 to 1.34 area after bouncing strongly from the key 1.3000 support level. The pair has been moving sideways overall, with mild pound strength recently but no clear long term trend. Markets expect it to stay mostly between 1.300 and 1.370 over the coming months.
What’s Driving GBP to USD?
A simple view of the main forces pushing the exchange rate.
Both the UK and US are expected to cut interest rates, which keeps the pair from trending strongly in one direction.
UK data has softened, with weaker jobs numbers and slowing growth raising pressure on the Bank of England to cut rates soon. This normally weighs on the pound.
The US dollar has been mixed. Hopes for Federal Reserve rate cuts pushed it lower, but any sign of stronger US data or higher inflation supports the dollar again.
UK politics and the upcoming budget are adding uncertainty. Talk of tax hikes and political instability has made traders cautious.
What Do the Charts Say?
A quick look at the technical picture.
Strong support sits at 1.3000. If this breaks, GBP could fall sharply.
First resistance is near 1.3180 to 1.3250. A break above this would show improving pound momentum.
Bigger resistance sits around 1.3414 to 1.3500.
The pair is still in a broader downtrend, but short term action has become more balanced.
Traders are watching 1.3100 closely. Holding above keeps things stable. Falling below reopens downside risks.
What to Watch in December 2025
The major events that can move GBP to USD soon.
The UK budget. Any surprise tax changes or signs of weak fiscal discipline could hurt the pound.
Bank of England meetings. A confirmed rate cut would limit pound's upside.
US Federal Reserve meeting. If the Fed hints at fewer rate cuts, the dollar could strengthen.
UK GDP and jobs data. Weak numbers would likely pressure the pound.
Risks Ahead
A look at potential trouble spots.
A poor UK budget announcement or political instability could trigger a sharp pound drop.
Strong US data or sticky inflation could push the dollar higher quickly.
Breaking below 1.3000 could create a rapid move lower.
High volatility is expected around central bank announcements.
What This Means If You’re Sending GBP to USD Abroad
A simple guide for everyday users.
If you need to send GBP to the US soon, the rate is fairly stable but could weaken if UK data disappoints or the budget triggers a negative market reaction.
If GBP moves below 1.3100 or toward 1.3000, it may become more expensive to send money because each pound buys fewer dollars.
If GBP breaks above 1.3250 or 1.3300, you could get a slightly better rate, but gains may be limited due to the overall range.
Live GBP to USD exchange rates
Converting GBP to USD
If you are planning to send GBP to USA, you need to pick the right money transfer company to get the most USD on the other end.
Depending on your needs, it's best to use one of the following companies in December:
History of the GBP to USD
The GBP/USD forex exchange rate has had a long history because of the strong business and social ties between the United States and the United Kingdom.
The British pound was created in 1694 after the UK formed the Bank of England (BoE) while the US dollar was created in 1794.
The GBP/USD currency pair was nicknamed the cable because of the transatlantic cables that connected the UK and the US.
These cables were connected to submarines, which relayed the exchange rate between the two currencies.
For a long time, the decline of the British economy on the global stage has witnessed a fall in its market share.
This decline accelerated when the UK gave up many of its colonial countries in Europe, Asia, and South America.
At the same time, this decline coincided with the strong performance of the United States as a superpower.
| Date | 1 Pound Sterling in USD |
|---|---|
| Dec 18, 2025 | 1.338465 USD |
| Dec 19, 2025 | 1.337800 USD |
| Dec 20, 2025 | 1.329450 USD |
| Dec 21, 2025 | 1.337542 USD |
| Dec 22, 2025 | 1.346895 USD |
| Dec 23, 2025 | 1.351285 USD |
| Dec 24, 2025 | 1.349573 USD |
| Dec 25, 2025 | 1.350823 USD |
| Dec 26, 2025 | 1.350165 USD |
| Dec 27, 2025 | 1.350000 USD |
Our handy, modern currency app lets you:
Instantly convert 25,000+ currency pairs
Compare live transfer deals
Get reviews & insights
Our app is free for mobiles and tablets, with no intrusive ads or in-app purchases.
Related Content
Contributors
