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    US-China tensions ease, Pound falls as traders focus on comments from BoE officials

    by VT Markets
    /
    Oct 13, 2025

    Technical Analysis of GBP/USD

    This month, the GBP has shown the strongest gains against the Japanese Yen, rising by 3.02%. Heat maps reveal notable changes in the GBP’s value against other major currencies, with performance varying depending on the pair. As of October 13, 2025, the British Pound seems to be heading downwards. Easing US-China tensions and a cautious approach to UK data are putting pressure on the GBP/USD pair. Therefore, derivative traders might want to explore strategies that could benefit from a falling or stable pound in the coming weeks. We think the Bank of England’s cautious approach is the main factor at play. With inflation hovering around 4%, double the target, the Bank’s concerns focus more on economic weakness than on inflation. Recent data showing only a 0.1% growth for the UK economy in the second quarter of 2025 further supports this view, making any hawkish comments from MPC members this week unlikely to hold.

    US Dollar Impact

    On the other side of the exchange, a calmer geopolitical environment usually weakens the US dollar. However, the differences in central bank policies are crucial. The latest US CPI data from September 2025 shows inflation at a manageable 2.8%, giving the Federal Reserve more room to maneuver than the Bank of England. This fundamental difference should continue to favor the dollar over the pound, even amidst distractions like the ongoing US government shutdown. From a technical viewpoint, the bearish trend is clear, with prices below all key short and medium-term moving averages. We should keep an eye on the 1.3300 level as a potential point for further declines. Consideration of put options with strike prices near the 1.3200 support level could be a good idea. Any upward moves towards the 1.3400-1.3450 resistance range may serve as opportunities to establish new bearish positions. Create your live VT Markets account and start trading now.

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