Pound Sterling (GBP) may test the 1.3435 mark, with the major support remaining at 1.3400. Over time, there appears to be a risk towards the downside, but any GBP declines will likely occur within a range of 1.3400 to 1.3535.<\/p>\n
In the recent 24-hour view, GBP was expected to range between 1.3470 and 1.3535, but it dropped to 1.3456. Despite this dip, the support at 1.3400 is not anticipated to be in jeopardy, provided GBP does not surpass 1.3500.<\/p>\n
In the 1-3 weeks view, while GBP was forecasted to potentially rise to 1.3590, the chances beyond this were low. Though GBP reached 1.3567 and then retracted, maintaining a position above the ‘strong support’ level of 1.3455 is needed. Subsequently, GBP fell to 1.3456; however, the support level has not been distinctly breached, and any GBP weakness should fall within the 1.3400\/1.3535 range. A break below 1.3400 might prompt a more considerable decline.<\/p>\n
Given that upward momentum for GBP\/USD has faded, our immediate focus shifts to range-trading strategies with a bearish bias. The pair is likely to be contained between 1.3400 and 1.3535 in the near term. This suggests selling out-of-the-money call options or establishing bear call spreads with strike prices above 1.3535 to capitalize on the weak upside potential.<\/p>\n
This view is strengthened by recent UK economic data, which points to a slowing economy. The latest figures for December 2025 showed UK inflation cooled to 2.8%, easing pressure on the Bank of England, while Q4 2025 GDP growth was a sluggish 0.1%. These fundamentals make a sustained rally in the pound unlikely, reinforcing the resistance level at the top of the range.<\/p>\n
On the other side of the pair, a resilient US jobs market, which added 210,000 jobs in December 2025, continues to support the dollar. This underlying dollar strength adds credibility to the idea of testing the 1.3435 level. Traders could consider buying put options with a strike near 1.3450 as a limited-risk way to profit from a move toward the bottom of the expected range.<\/p>\n
We must remain vigilant about a potential break below the 1.3400 major support, as this could trigger a more significant drop. We remember how the pair reacted to unexpected policy news in late 2025, showing that key levels can be breached quickly. Setting alerts and having a plan to purchase further out-of-the-money puts on a break of 1.3400 would be a prudent hedge against a sharp decline.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Pound Sterling remains range-bound between 1.3400 and 1.3535, with downside risks if support breaks.<\/p>\n","protected":false},"author":62,"featured_media":17032,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38586","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\/38586","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=38586"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17032"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}