The Pound Sterling (GBP) might continue to rise, but it probably won’t exceed the 1.3175 level. Analysts at UOB Group believe that the GBP has stopped its earlier decline and is likely to recover, though it should stay between 1.3050 and 1.3220. In the last 24 hours, GBP increased notably, reaching as high as 1.3142 and closing at 1.3140, an uptick of 0.67%. Despite this rise, surpassing 1.3175 soon is unlikely. The support level is at 1.3120, and if it drops below 1.3095, further increases seem doubtful.

GBP Recent Trend

Recently, GBP was on a downward trend. Analysts pointed out that if GBP moved above 1.3120, its weakness would end, allowing for a partial recovery within 1.3050 to 1.3220. While there’s some chance of recovery, going above 1.3220 is improbable. The FXStreet Insights Team consists of journalists who gather and share market insights from experts. This information contains forward-looking statements, and readers should do their homework before investing. The opinions in this article may not represent the official stance of FXStreet or its advertisers. As of today, November 7, 2025, it appears that the Pound’s recent decline has likely ended. The sudden rise beyond the 1.3120 resistance level confirms this change in momentum. However, we do not expect a long-term bull market at this point. This view is supported by the latest UK inflation data, which showed that the headline CPI fell to 2.8% last month, slightly below expectations. This eases the pressure on the Bank of England to raise rates aggressively, limiting the Pound’s potential gain near the 1.3220 level. Therefore, selling out-of-the-money call options or using bear call spreads with strike prices above 1.3225 could be a smart move in the coming weeks.

Strategies for GBP/USD

On the other side, last week’s US Non-Farm Payrolls report showed consistent job growth with 195,000 jobs added, suggesting that the Federal Reserve feels comfortable keeping interest rates steady for now. This stability provides a strong support level for the US dollar, making a sustained drop below the 1.3050 support level for GBP/USD unlikely. This bottom support encourages the strategy of selling put options below 1.3050. With the pair expected to fluctuate in a range, strategies that benefit from low volatility, like short strangles or iron condors, look appealing. The one-month implied volatility for GBP/USD has dropped to 6.5%, making it cheaper to enter trades but also indicating lower option premiums. This situation favors traders who believe the 1.3050 to 1.3220 range will hold. We have observed similar price movements before, especially during the consolidation phase in mid-2024 when both central banks paused their rate increases. At that time, the pair traded sideways for several months, rewarding range-trading strategies. Current economic data from both the UK and US suggests that a similar period of consolidation may be coming up. Traders should keep a close eye on the critical levels of 1.3220 and 1.3050. A daily close above the upper level or below the lower level would indicate that our range-bound view might be incorrect. In such a case, it would be necessary to adjust positions quickly, as a new trend could be forming. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now