The GBP/USD experienced significant volatility in Q1 2025, starting at 1.2500, dropping to 1.2100 in January, and surging to 1.3014 by mid-March, representing a 3.5% year-to-date performance. The Bank of England's 25 basis point interest rate reduction to 4.5% in February contributed to the pound's initial depreciation while aiming to support economic growth.