GBP/USD Trapped in Range as Recession Fears Persist

The British pound has been stuck in a narrow trading range against the US dollar since mid-2025, due to persistent concerns over a potential UK recession.

GDP growth has flatlined in recent quarters, and consumer confidence remains fragile, offsetting any positive momentum from economic data.

The Bank of England's cautious approach to interest rate cuts has provided some support to the pound, but the threat of a technical recession continues to weigh on investor sentiment.

Technical analysts point to the 1.2500-1.2700 range as the critical battleground for GBP/USD, with a break above 1.2700 potentially targeting 1.2900, and a drop below 1.2500 opening the door to 1.2300.