Goldman Sachs is maintaining a short GBP/USD trade as Cable slips towards its 1.3250 target, with the bank yet to signal that the move has run its course.
The Pound to Dollar exchange rate (GBP/USD) traded around 1.3288 on Wednesday, leaving Goldman Sachs’ tactical downside target at 1.3250 within touching distance.
GBP/USD was little changed on the day after falling in four of the previous six sessions. The pair has retreated from a mid-July high near 1.3540 and is now trading close to the lower end of its three-month range.
Goldman Sachs’ latest trade list shows that the bank is still running a short GBP/USD position opened at 1.3452.
The trade carries a target of 1.3250 and a stop at 1.3400, with Goldman noting that Cable was trading at 1.3289 when the report was prepared. In practical terms, most of the expected move has already taken place, but the position remains active.
That makes the absence of a closure signal important. Goldman has not yet indicated that the short has delivered enough profit to be removed, suggesting the bank still sees scope for Sterling to test the target area.
The trade has worked quickly. GBP/USD fell below the 1.3400 level in the days after entry and continued lower as the Dollar regained support and Sterling struggled to sustain its mid-month rebound.
The latest Exchange Rates UK chart shows Cable’s broader loss of momentum.
GBP/USD traded above 1.36 in early May before falling sharply towards 1.3320. A recovery later that month failed below 1.35, while June brought another decline to around 1.3160.
Pound Sterling rebounded again in July, briefly reaching 1.3540, but the move unravelled almost as quickly. The pair has since fallen back towards 1.3290, creating a sequence of lower peaks since the May high.
The price action leaves Goldman’s 1.3250 target close to the centre of an area that has repeatedly attracted buyers this year. June’s monthly close was near 1.3250, while the July low stands just above 1.3220.
That does not guarantee the target will hold, but it helps explain why the trade is tactical rather than an open-ended bearish call.
The year-to-date Pound Sterling vs US Dollar exchange rate chart also shows a marked split between the Pound’s major crosses.
GBP/EUR remains almost 2% higher since the end of 2025, despite giving back part of its July advance. GBP/USD, by contrast, is roughly 1% lower over the same period.
The divergence suggests the recent Cable weakness is not simply a broad Sterling collapse. Dollar strength has played a substantial role, while the Pound has continued to hold up better against the Euro.
That distinction matters because Goldman’s position is specifically short GBP/USD, not a general recommendation to sell Sterling across the board.
The intraday chart underlines the lack of urgency among buyers. Cable briefly pushed above 1.3310 during the previous session, but the rally faded and the pair later slipped close to 1.3280 before recovering modestly.
Near-Term GBP/USD Forecast: Goldman’s 1.3250 Target Moves Within Reach
Goldman’s target now sits less than half a cent below the prevailing market level, leaving the trade close to completion but not there yet.
A break beneath 1.3280 would expose 1.3250 directly, followed by July’s low near 1.3220. Those are the clearest downside markers from the supplied price history rather than separate Goldman technical levels.
The upside is more awkward for the bearish trade. Goldman’s stop at 1.3400 now stands well above the market, meaning Cable would need a substantial reversal to invalidate the position.
A move back through 1.3350 would be the first sign that the latest decline is losing momentum. Reclaiming 1.3400 would take the pair above Goldman’s stop and undermine the recent pattern of lower highs.
The immediate catalysts are likely to come from the Federal Reserve, the Bank of England and the relative performance of US and UK bond yields. A firmer Dollar and cautious BoE tone would keep the target under pressure, while a softer Fed message could trigger profit-taking on short Cable positions.
Goldman has already captured most of the move it set out to achieve. The final stretch towards 1.3250 may prove slower, particularly with the pair approaching an area that has repeatedly drawn demand.
Still, the trade remains on the bank’s list. Until that changes, the message is straightforward: Goldman is not calling the bottom in GBP/USD just yet.
