Pound Sterling is expected to trade between 1.3105 and 1.3175 against the US Dollar. Analysts from UOB Group believe that the GBP’s recent weakness has ended, and it may recover within a range of 1.3050 to 1.3220. In the last 24 hours, GBP rose sharply to 1.3142. Although momentum has slowed, we expect it to continue trading between 1.3105 and 1.3175. It’s unlikely that the strong resistance level at 1.3230 will be reached today.

Analyst Predictions

In the next one to three weeks, the decline in GBP appears to be over, with potential for further increases within the trading range. Analysts are optimistic that GBP will recover within the targets mentioned. Other market movements include rising gold prices, even as Fed cut expectations ease. Additionally, the AUD/USD pair has gained due to positive comments from central banks, and the Dow Jones is climbing as the US government prepares to reopen. Bitcoin has also returned to $106,000, thanks to solutions surrounding the shutdown, boosting market sentiment. Traders are looking forward to upcoming UK employment data and insights from the Bank of England, while optimism about the US government’s reopening is affecting market trends. With the end of GBP’s recent weakness, we expect GBP/USD to settle into a range. The upward momentum has faded, suggesting the pair will trade between 1.3050 and 1.3220 for the next few weeks. This indicates that sharp moves in either direction are unlikely for now.

Trader Strategies

This perspective is backed by recent economic data, which shows a stable market. Last week’s UK inflation figure for October 2025 was 2.8%, still above the Bank of England’s target, which deters any discussions of rate cuts. Meanwhile, the latest US jobs report showed steady but not extraordinary growth, keeping the Federal Reserve on a neutral path and limiting the US Dollar’s strength. For traders, this environment is perfect for low volatility profit strategies. Selling options, such as an iron condor with strikes set outside the 1.3050 to 1.3220 range, could be a smart way to gather premium. The idea is that the currency pair will stay within these levels until the options expire. Market pricing reflects this outlook, as the 1-month implied volatility for GBP/USD has dropped to 7.5%, close to the lowest since summer. This suggests that options sellers are not requiring high premiums for protection against large price changes. Historically, we saw a similar stable phase in late 2023, when the pair traded sideways for over a month before the next significant movement. Traders should adopt a patient approach, focusing on range-bound strategies instead of pursuing directional trades. Any rise toward the 1.3220 level should be viewed as a selling opportunity, whereas drops toward 1.3050 could present buying chances. We will keep an eye on forthcoming retail sales data from both the UK and US for any signs that might disrupt this stable outlook. Create your live VT Markets account and start trading now.

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