According to interest rate parity, currencies with high interest rates have forward discounts. In this case, the interest rate of the pound is higher than the interest rate of the dollar, the forward pound has a discount, and the forward exchange rate based on the pound falls. The forward exchange rate of the pound and the dollar fell. The annual premium rate of sterling is 2.5% of the interest rate difference between the two currencies. Three-month GBP/USD forward exchange rate =1.9600 * (1-2.5%/4) =1.9478, GBP discount: 122 points.