Goldman Sachs Sees Pound-Dollar Slipping to 1.28 by Next Year

Goldman Sachs has released its latest forecast for the British Pound against the US Dollar. According to the bank, the GBP/USD exchange rate is expected to slip back to 1.33 in three months and 1.28 in twelve months from around 1.35 now.

The forecast comes as the Pound Sterling ends the week on a firmer footing, with some analysts attributing recent gains to positioning concerns. However, Goldman Sachs does not expect these gains to hold, projecting a modest retreat rather than an abrupt reversal.

Despite the bank's cautious view, the Pound Sterling still has momentum, having strengthened over the past 48 hours and trading near 1.3551 on Thursday afternoon. The short-term performance chart shows Sterling pulling ahead against the Dollar over the past two days, while GBP/EUR has been much flatter.

Goldman's 12-month forecast of 1.28 is more striking, implying that the bank expects Sterling's recent resilience to fade and the Dollar to do more of the work again.