GBPUSD strengthens after rebounding from key support

The GBPUSD pair is strengthening on the back of a technical reversal and increasing pressure on the US dollar as markets expect a Fed rate cut. The rate currently stands at 1.3234. Find out more in our analysis for 3 December 2025.

GBPUSD forecast: key trading points

• Lack of support from high interest rates increases pressure on the US dollar
• Buyers are developing the formation of a Double Bottom reversal pattern on the GBPUSD daily timeframe
• Analysts expect the US dollar to weaken by 2% in December
• GBPUSD forecast for 3 December 2025: 1.3370

Fundamental analysis

The GBPUSD rate continues to rise after a strong rebound from the key support level at 1.3205. Buyers are increasing pressure and attempting to develop the Double Bottom reversal pattern on the daily chart, confirming the growing bullish momentum.

The US dollar remains under pressure due to expectations of further Fed rate cuts. The market is already pricing in about 89.1% probability that the Federal Reserve will cut rates by 25 basis points next week. Analysts believe the USD may weaken by around 2% in December. Historically, this month is seasonally negative for the US dollar – over the past ten years, December often brought USD declines, and the absence of previous support from high interest rates only strengthens this seasonal trend.

Traders are now shifting their attention to the ADP private-sector employment report for November, which will provide additional signals on the US labour market and may become the next driver for GBPUSD growth.

GBPUSD technical analysis

The GBPUSD pair is building bullish momentum after rebounding from the upper boundary of the Double Bottom reversal structure. After a long consolidation, bulls regained control, with the price settling above the EMA-65, forming a sequence of higher highs and higher lows.

Today’s GBPUSD forecast suggests the upward movement will likely continue towards 1.3370. The Stochastic Oscillator also supports the bullish scenario: its signal lines bounced from the support area and crossed in favour of further upside movement.

A consolidation above 1.3265 will indicate a breakout beyond the corrective channel, adding to pressure on the US dollar.

Summary

Strengthening upward momentum in GBPUSD, supported by expectations of a Fed rate cut and general USD weakness, increases the probability of further growth. The GBPUSD technical analysis points to a high likelihood of continued bullish momentum with an upside target at 1.3370.

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