Pound Sterling (GBP) is expected to trade between 1.3120 and 1.3185. Analysts at UOB Group believe that over time, GBP could rise, with a future range of 1.3065 to 1.3230. In the last 24 hours, GBP was predicted to vary between 1.3130 and 1.3190. However, it actually moved between 1.3116 and 1.3184, closing at 1.3149, which is a decline of 0.22%. It will likely continue to trade within the range of 1.3120 to 1.3185.

Short Term Expectations

From November 7 to November 11, there was an expectation for GBP to recover. The anticipated range for this period was adjusted to 1.3065 to 1.3230 but remains unchanged overall. With GBP expected to stay within 1.3065 and 1.3230, strong directional moves are unlikely in the coming weeks. This means we may experience low volatility, which is good for strategies that benefit from sideways movements. The market is processing recent decisions from central banks, leading to this stable phase. Recent economic data supports this outlook. As of November 2025, UK inflation dropped to 3.1%, still above the Bank of England’s target, prompting a cautious approach. Similarly, US job data showed steady growth, giving the Federal Reserve no reason to change its neutral stance before the new year.

Derivative Trading Strategies

For derivative traders, this calm market is good for selling volatility. Strategies like short strangles or iron condors around the 1.3150 level could effectively capture profits from time decay. The clear range of 1.3065 to 1.3230 serves as a good basis for setting strike prices. Looking back, we see similarities to a calm period in late 2023 after intense rate hikes by central banks. Such pauses often lead to range-bound currency trading as markets await the next big move. We seem to be entering a similar phase after the volatility experienced in early 2025. However, we must stay alert for any data that might disrupt this stability, especially with the upcoming UK Autumn Statement and US non-farm payrolls report. A significant surprise in either could affect our expected range. Therefore, it’s wise to manage positions with stop-losses in case volatility returns unexpectedly. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now