The GBP/USD pair is steady around 1.3230 while traders examine the UK’s Autumn Budget. Activity is quiet due to the US Thanksgiving holiday. The pair has gained over six sessions, trading at 1.3260 during Asian hours as the US Dollar faces pressure from anticipated Federal Reserve rate cuts. On Wednesday, GBP/USD rose by 0.55%, moving above 1.3200 and testing important long-term averages. Traders will keep an eye on the performance of the Cable bulls for the rest of the week.

Gold and Ethereum Updates

Gold has faced slight downward pressure as global markets remain uncertain following the Thanksgiving break. In contrast, Ethereum has made progress by agreeing to increase the block gas limit among validators, all without major changes to the network. UK and European stock indices mostly fell after Thanksgiving, with a focus on the UK budget review. Ripple is moving slowly, trading around $2.19, facing resistance that hinders further gains. Market movements reflect anticipation and analysis following important financial updates. The steady increase in GBP/USD above 1.3200 signals positive trends for the upcoming weeks. This rise is fueled by growing expectations that the Federal Reserve will cut rates in December. The latest US CPI data for October 2025 showed inflation slowing to 2.3% year-over-year, which adds to the dollar’s weakness—a key theme to watch. In contrast, the Bank of England appears to be holding firm, digesting a neutral UK budget while inflation remains at 2.9%, according to the latest ONS report. This divergence, with the Fed likely to ease and the BoE maintaining its stance, creates an advantageous environment for sterling against the dollar. We believe this difference in outlook from central banks will significantly influence market movements.

Trading Strategies and Market Outlook

For traders, this suggests strategies that capitalize on further gains in GBP/USD, such as buying call options that expire in January 2026. A similar scenario occurred in the latter half of 2019, when Fed rate cut expectations drove the dollar down and boosted GBP/USD by over 8% in the final quarter. The current low-volume holiday trading could serve as a good entry point before liquidity increases. The pair’s clear movement above key long-term averages strengthens the bullish case for futures traders. With the US dollar index (DXY) recently dropping below the 104.00 support level for the first time in months, the outlook for GBP/USD appears to be upward. We recommend monitoring potential movement toward the 1.3500 level before year-end. Create your live VT Markets account and start trading now.

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