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    GBP/USD pair drops for the fifth straight day, staying just above 1.3300

    by VT Markets
    /
    Oct 24, 2025

    Key Economic Data Releases

    The US Consumer Price Index (CPI) will be released at 12:30 GMT on Friday. Experts predict that the core CPI inflation will stay at 3.1% year-on-year for September. This will be one of the last inflation reports before the Federal Reserve meets on October 29, where a quarter-point interest rate cut is likely. Currently, GBP/USD is facing strong pressure, testing the 1.2200 level as it shows downward momentum. This decline is mainly due to a stronger dollar, following the recent US jobs report for September 2025, which revealed that the labor market remains strong, adding 210,000 jobs. Traders should note that the pair has struggled to stay above its 50-day moving average, indicating the potential for further weakness. The pound’s challenges are compounded by upcoming UK growth data, which early forecasts suggest could show economic contraction in the third quarter. Remember the sharp market swings that followed fiscal uncertainty in late 2022; any disappointing data could easily unsettle traders. Recent options market activity shows a rise in demand for downside protection on the pound, with put option volume increasing over the past week.

    Market Positioning And Strategy

    Next week, traders will focus on the US Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s favorite measure of inflation. The market expects a core reading of 2.8% year-over-year, which would likely support the Fed’s stance to keep interest rates higher for longer. This is a shift from market views just a year ago in 2024, when rate cuts were being considered for this time frame. With this in mind, we are preparing for a continued split between the US and UK economies. Traders might think about buying put options on GBP/USD to protect against a fall below the 1.2200 support level, especially ahead of the US PCE data. Creating bearish risk reversals could also be a cost-effective strategy to express a negative outlook on the pair in the coming weeks. Create your live VT Markets account and start trading now.

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