Goldman Sachs Maintains GBP/USD Short Position Amid Dollar Strength

Goldman Sachs continues to hold its short GBP/USD trade, with the bank's target at 1.3250 now within reach. The Pound Sterling has been weakening against the US Dollar, with the exchange rate trading around 1.3288 on Wednesday.

The bank opened a short position at 1.3452 and has not yet signaled that the move has run its course. In practical terms, most of the expected move has already taken place, but Goldman sees scope for Sterling to test the target area.

The Pound's weakness is largely due to Dollar strength, rather than a broad Sterling collapse. The GBP/EUR exchange rate remains almost 2% higher since the end of 2025, while GBP/USD is roughly 1% lower over the same period.