The GBP/USD currency pair is currently expected to stay within the range of 1.3420 to 1.3465. Momentum indicators are flat, showing stability in the short term. However, if momentum increases, the British Pound could rise to 1.3515. Recently, the pound hit a high of 1.3448 but ended up settling around 1.3455. This strong momentum seems to have paused, leading to consolidation rather than further gains, as it moved between 1.3418 and 1.3460.

Positive Market Outlook

Analysts are optimistic about the GBP as long as it stays above the strong support level of 1.3345. They predict that if current momentum trends hold, the pound could rise to 1.3515 without breaking this support. Please note that the market information provided is for informational purposes only and should not be seen as a buy or sell recommendation. It’s important to conduct thorough research and understand the risks involved in investing, including the possibility of losing the entire investment. The author does not take responsibility for the accuracy or completeness of this information. As of today, August 11, 2025, we see the pound consolidating against the dollar. Last week’s US jobs report showed a modest addition of 190,000 jobs, offering no strong reason for significant movement, thereby keeping the pair within the 1.3420 to 1.3465 range. Currently, momentum indicators remain flat, suggesting this sideways trading may continue.

Selling Options Strategy

If momentum picks up, we could see the pair climb toward 1.3515. This outlook is supported by the UK’s July inflation rate, which was reported at 2.8%, putting some pressure on the Bank of England. A break above the recent high of around 1.3460 could signal this upward movement. Given this expected stability, selling options to collect premiums looks like a viable strategy in the coming weeks. We’re considering tactics like short strangles, which profit if GBP/USD stays between our defined strikes until expiration. This strategy benefits from the current flat momentum and range-bound movement. Our positive outlook hinges on the pair maintaining its position above the key support level of 1.3345. This level was tested and held during the market volatility in June 2025, making it crucial to our bullish assumptions. A drop below this level would invalidate our current range-bound view. The current pause in momentum is understandable given the strong rally in the second quarter of 2025. That sustained buying pressure appears to have exhausted itself, leading to the consolidation we’ve experienced throughout July and early August. This period allows the market to absorb past gains and decide its next major direction. Create your live VT Markets account and start trading now.

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