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GBP/USD Forecast 2026-2028: Banks See Sterling Rising Towards 1.38

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The latest survey from Exchange Rates UK Research shows a mixed near-term outlook for the Pound to Dollar exchange rate, followed by a stronger median forecast through 2027.

Currently trading around 1.3492, the median bank forecast stands at 1.33 for Q3 2026, 1.34 for Q4, 1.35 for Q1 2027, and 1.36 for Q2.

The forecast then rises to 1.37 in Q3 and around 1.39 by Q4 2027, indicating a gradual shift in favour of sterling.

Banks such as Bank of America, UBS, ABN AMRO, Scotiabank, TD Economics, CIBC, and Westpac see sterling strengthening into the upper 1.30s.

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