Sign Up Log in

    Despite oversold conditions, the pound sterling could still drop to 1.3245.

    by VT Markets
    /
    Oct 10, 2025
    The Pound Sterling (GBP) may keep falling against the US Dollar (USD), even though it seems oversold. It’s unclear if it will hit the 1.3245 level today. Downward momentum is strong, with a technical target set at 1.3200. Analysts believe that GBP might continue to weaken because of this strong momentum. Although the market looks oversold, the chances of a recovery seem limited, with resistance around 1.3370 and minor resistance at 1.3330.

    Currency Market Trends

    Recently, GBP fell faster than expected. It dropped below the forecasted level of 1.3325, quickly falling to 1.3280, which increased downward pressure. The next target is set at 1.3200, while strong resistance has shifted to 1.3410 from the previous 1.3465. This analysis comes from market experts and includes insights from commercial notes and external analysts, highlighting current trends in the currency market. The rapid decline of the Pound indicates that further weakness may be ahead. Recent UK economic data showed stagnant Q3 GDP growth at just 0.1% and high inflation at 3.2%. In contrast, a recent US jobs report revealed a strong addition of 230,000 jobs, boosting the dollar’s strength.

    Approach for Traders

    For traders, this indicates strategies to profit from the ongoing decline in GBP/USD. Buying put options with strike prices near 1.3200 is a solid way to prepare for this drop. Selling GBP/USD futures contracts is another direct method to capitalize on the fall. Even with the currency appearing oversold, any rallies are likely to be temporary. We should note the 1.3410 level as a key point for placing stop-loss orders on short positions. This level is now a ceiling, and if it breaks, it may indicate that the downward pressure is easing. It’s important to consider the Pound’s past volatility, such as the steep drops during the 2022 fiscal announcements. This history shows that even in oversold conditions, rapid declines can happen when momentum is strong. Therefore, countering this trend could be a costly error. Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code