**Pound Sterling Trends** Recently, the GBP has experienced fluctuations. It was initially expected to trade between 1.3050 and 1.3220, but now it’s more stable, ranging from 1.3065 to 1.3230. After hitting a low of 1.3085, it’s now anticipated to stay between 1.3065 and 1.3185. While it may reach 1.3240, a breakout above this level is unlikely. The FXStreet Insights Team gathers market reports from various experts, combining both commercial content and additional analyst insights. **GBPUSD Range-Bound Strategy** With GBP/USD expected to stay between 1.3120 and 1.3200, this presents a chance for range-bound strategies. The upward movement is cautious, making aggressive bullish positions risky. Options traders might think about selling strangles with strikes outside this range to earn from the lack of strong directional moves. This limited movement stems from mixed economic signals. In October 2025, UK inflation rose unexpectedly to 3.1%, which might keep the Bank of England cautious. However, Q3 GDP data showed a slight contraction of 0.1%. This stagflationary environment caps the pound’s potential, making it hard to break above 1.3240 in the coming weeks. Conversely, recent US data shows a slowing economy, which limits dollar strength. The October 2025 non-farm payroll report was below expectations at 150,000, reducing pressure on the Federal Reserve to tighten further. This situation provides support for the GBP/USD pair, reinforcing the level around 1.3095. Given this context, a bull call spread might be a good strategy for the next few weeks. By buying a call option at a lower strike, like 1.3150, and selling a call at a higher strike, such as 1.3250, traders can profit from a slight rise towards the 1.3240 target. This method manages risk while taking advantage of the limited upward movement we expect. We saw a similar scenario in late 2023 when uncertainty around central bank rates resulted in long periods of range-bound trading. During that time, strategies benefiting from low volatility and sideways price action were the most effective. History indicates that until either UK growth improves or US economic weakness speeds up, the pound will likely stay in this stable condition. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now