The Pound Sterling (GBP) is underperforming, falling 0.1% against the US Dollar (USD). Early gains in the upper 1.33s during Asian trade were not sustained.<\/p>\n
There is no notable news affecting the GBP’s decline. EURGBP gains through the late September high around 0.8750 may have pressured the pound, nearing the July high of 0.8770. <\/p>\n
GBP’s current performance affects its short-term technical outlook, reinforcing resistance at 1.3370. The low on Friday at 1.3288 is key support, with potential for further losses below this level.<\/p>\n
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We are seeing the Pound struggle against the Dollar, failing to hold gains above the 1.3370 level. This suggests that buying put options with a strike price below the key 1.3288 support level could be a viable strategy. A decisive break below this point would likely accelerate losses for the GBP\/USD pair.<\/p>\n
This softness in the Pound is not surprising given the latest economic releases we have seen from the UK. Last week\u2019s data showed that third-quarter GDP growth was a mere 0.1%, feeding speculation that the Bank of England will need to signal a more dovish stance. This is a stark contrast to the economic picture back in 2024, when inflation was the primary concern.<\/p>\n
While the Federal Reserve is also expected to lower its rates, the market appears to be pricing in a more significant economic slowdown in the UK. The persistent strength in the EUR\/GBP cross, which is now testing its July highs near 0.8770, confirms this is a story of specific Sterling weakness. We can look back at the post-Brexit volatility of the late 2010s to see similar periods where the Pound underperformed its peers.<\/p>\n
For the coming weeks, establishing short positions on GBP\/USD futures makes sense, especially if that 1.3288 level is breached. Alternatively, purchasing December-expiry put options provides a defined-risk way to capitalize on further downside. Implied volatility for one-month options has ticked up to 9.2% in recent days, reflecting the market’s anticipation of a significant move.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Pound Sterling weakens against US Dollar; technical resistance at 1.3370 holds, support eyed at 1.3288.<\/p>\n","protected":false},"author":62,"featured_media":17030,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-33387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/33387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=33387"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/33387\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17030"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=33387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=33387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=33387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}