Fundamental Market Analysis for May 13, 2026 GBPUSDBritish Pound/US DollarSAXO:GBPUSDFresh-Forexcast2004GBP/USD is trading around 1.35400 after a noticeable decline the previous day. The main pressure on the pair is coming from the strengthening of the US dollar after accelerating inflation and rising Treasury yields. The market has become more cautious in assessing the outlook for Fed rates, while demand for the US currency has increased due to worsening sentiment across global markets and rising oil prices. The pound remains under domestic pressure due to political uncertainty in the United Kingdom and a jump in long-term government bond yields. Investors are concerned that prolonged disputes around the country’s leadership could complicate fiscal policy and increase borrowing costs for the government, businesses, and consumers. Therefore, attempts by the pound to stabilize appear limited. As of today, the base case for GBP/USD remains moderately bearish. If demand for the dollar persists and there are no clear signs of easing political tensions in the UK, the pair may continue to correct lower. New data on U.S. producer prices could intensify the move if it confirms sustained inflationary pressure. Therefore, the preference remains for selling from current levels. Trading recommendation: SELL 1.35400, SL 1.35600, TP 1.34500