GBPUSD Holds Near 1.25 as UOB Flags Limited Upside

As of 21 May 2026, GBPUSD trades in a tight range around the 1.25 handle with limited upside according to UOB. The week opened with Labour leadership uncertainty after Wes Streeting’s exit and IMF’s upgrade of 2026 UK growth to 1%. Hawkish BoE comments from Greene on delayed inflation effects were offset by softer data including unemployment rising to 5.0% and PMI contraction. MUFG noted a modest rebound as fiscal and inflation fears eased, yet UOB retains a neutral stance with support near 1.2400 and resistance at 1.2650.