Insights 
VT 
The GBP/USD pair is expected to trade within a range of 1.3330/1.3380 in the short term, according to the UOB Group. Analysts Quek Ser Leang and Peter Chia foresee the pound potentially drifting lower within a broader range of 1.3310/1.3435 in the longer term.
In a 24-hour view, the pound might move sideways, despite falling to 1.3311 previously before rebounding to 1.3357. The currency is unlikely to break below 1.3310 for a sustained decline, as observed in the past trading sessions.
Short to Medium Term Outlook
Over a span of one to three weeks, downward momentum for the GBP has increased but is not strong enough to suggest a definitive downward trend. The pound had dipped slightly, yet later recovered, indicating a continued sideways movement within the specified range.
The insights are provided by the FXStreet team, which curates market observations from recognised experts. The article stresses the importance of conducting thorough research and that it does not constitute investment advice. Readers are urged to consider potential risks and conduct their analysis before making financial decisions.
The Pound Sterling looks set to trade sideways against the US Dollar in the immediate future, likely staying within a 1.3330 to 1.3380 range. Given this lack of strong direction, we see an opportunity in selling options to collect premium from time decay. This strategy benefits from markets that do not make large, sudden moves.
Market Conditions and Strategy
Recent data supports this view, with UK inflation for September 2025 coming in at a stubborn 3.1%, while third-quarter GDP growth was a sluggish 0.1%. The Bank of England is unlikely to make aggressive moves in this environment, capping the upside for Sterling. Meanwhile, mixed jobs data from the US has kept the Federal Reserve on hold, limiting strong momentum for the dollar as well.
Over the next few weeks, we anticipate a slight downward drift, with the currency pair likely staying within a 1.3310 to 1.3435 range. A sustained breakdown below 1.3310 seems improbable for now, suggesting a slow grind rather than a sharp drop. This outlook makes strategies like a bear put spread attractive, as it can profit from a modest decline while clearly defining risk.
Current market conditions are a world away from the volatility we saw during events like the 2022 UK fiscal crisis, where the pair experienced massive swings. One-month implied volatility for GBP/USD is now hovering near multi-year lows of around 6.5%, compared to the peaks above 20% we saw back then. This low-volatility environment makes selling options premium a particularly viable strategy for generating income.
