GBPUSD Analysis 22-September-2025

The primary driver for the Pound remains the widening monetary policy divergence between the Federal Reserve and the Bank of England. The BoE’s decision to hold rates steady last week, citing stubbornly high inflation, stands in stark contrast to the Fed’s move to begin an easing cycle. This fundamental backdrop provides a strong tailwind for Sterling. However, the pair has seen a pullback from its recent highs, largely due to the broad-based dollar rebound that followed the Fed’s cautious commentary. Traders will be looking for fresh impetus from upcoming speeches by BoE and Fed officials.