The GBP/USD pair is predicted to trade between 1.3330 and 1.3380 in the short term, according to UOB Group. Analysts Quek Ser Leang and Peter Chia believe the pound may slide lower within a wider range of 1.3310 to 1.3435 in the long term. In the next 24 hours, the pound might remain stable. It recently fell to 1.3311 but then bounced back to 1.3357. It seems unlikely to drop below 1.3310 for an extended time, as seen in recent trading sessions.

Short to Medium Term Outlook

Over the next week or three, the GBP shows some downward momentum, but it’s not strong enough to indicate a clear downward trend. The pound dipped slightly but then recovered, suggesting it will continue to move sideways within the defined range. The FXStreet team provided these insights, which come from recognized market experts. The article emphasizes the importance of thorough research and clarifies that it does not provide investment advice. Readers should assess potential risks and do their own analysis before making financial choices. The Pound Sterling appears to be on track to trade sideways against the US Dollar soon, likely remaining between 1.3330 and 1.3380. Given this lack of strong movement, selling options could be a good way to earn premium from time decay. This strategy works well in steady markets that don’t have large, sudden shifts.

Market Conditions and Strategy

Recent data supports this outlook. UK inflation was stubbornly at 3.1% in September 2025, and GDP growth for the third quarter was a slow 0.1%. The Bank of England is unlikely to take aggressive steps in this situation, which limits the potential upside for Sterling. At the same time, mixed job data from the US has kept the Federal Reserve from taking action, limiting strong momentum for the dollar. Over the next few weeks, we expect a slight downward drift, with the currency pair likely staying between 1.3310 and 1.3435. It seems unlikely to break below 1.3310 for now, suggesting a slow decline rather than a sharp drop. This scenario makes strategies like a bear put spread appealing, as they can profit from small declines while clearly defining risks. Current market conditions are quite different from the volatility experienced during the 2022 UK fiscal crisis, where the pair saw large swings. The one-month implied volatility for GBP/USD is currently near multi-year lows of around 6.5%, compared to peaks above 20% during that time. This low-volatility environment makes it an excellent time to sell options premium for generating income. Create your live VT Markets account and start trading now.

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