British Pound Forecast: GBP/USD Forms Second Falling Wedge Pattern in 2026

GBP/USD Outlook: Potential for Upside After Falling Wedge Patterns

At the start of 2026, the GBP/USD currency pair formed a falling wedge pattern soon after markets reopened for the New Year. This technical setup led to a significant breakout, propelling the pair to its highest level in four years. However, much like what occurred with EUR/USD, this surge appeared to be influenced by the decline in USD/JPY. As the US Dollar regained strength, GBP/USD experienced a pullback from its recent highs.

Since reaching those peaks, another falling wedge pattern has developed, mirroring the situation seen in EUR/USD. I discussed this scenario earlier today, and it appears that both currency pairs present promising opportunities for upward movement. Both markets could offer appealing setups for traders looking for potential gains.