The Pound Sterling (GBP) is expected to stabilize within the range of 1.3455 to 1.3525. Over the longer term, analysts from UOB Group, Quek Ser Leang and Peter Chia, predict it will fluctuate between 1.3360 and 1.3525. Yesterday, GBP was anticipated to trade between 1.3415 and 1.3470. However, it unexpectedly rose to a high of 1.3527 before settling back down at 1.3477, which is a 0.21% increase. There wasn’t much upward momentum, indicating that today’s movements are likely to be limited, with GBP staying between 1.3455 and 1.3525.

Anticipated Trading Range

In the coming weeks, GBP has shown signs of stabilizing, leading to expectations that it will trade between 1.3360 and 1.3525. Although there was a brief move above 1.3525, the lack of strong upward momentum suggests GBP will continue within this range. The recent rise to 1.3527 didn’t hold, indicating weak upward momentum. We expect GBP to consolidate, likely remaining between 1.3455 and 1.3525 in the next few days. Thus, attempting to predict a significant movement in either direction may be risky right now. This steady state occurs as the Bank of England holds its position, with the latest Consumer Price Index (CPI) data from late September 2025 showing inflation near the 2% target. Similarly, moderate U.S. jobs data gives the Federal Reserve little reason to make policy changes. Without strong movements from either central bank, the currency pair is likely to stay stable.

Trading Strategies and Options

For the next few weeks, traders might want to focus on strategies that take advantage of this expected low volatility and range-bound movement. One option is to set up an iron condor by selling a call spread above the 1.3525 resistance level and a put spread below the 1.3360 support. This allows for collecting premiums as long as the Pound stays within this range. Implied volatility for GBP/USD options is decreasing, supporting this prediction of consolidation. We’ve seen a significant drop from the peaks in 2023 when central banks were aggressively raising rates. This current environment favors strategies that benefit from time decay instead of big directional movements. Create your live VT Markets account and start trading now.

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