Insights 
VT 
The GBP/USD pair remains unchanged around 1.3230 as traders analyse the UK’s Autumn Budget amid low trading caused by the US Thanksgiving holiday. The pair has maintained a winning streak for six sessions, trading at 1.3260 during Asian hours as the US Dollar has been affected by potential Federal Reserve rate cut bets.
On Wednesday, GBP/USD rose by 0.55%, crossing the 1.3200 mark and challenging key long-term averages. The focus for the rest of the week will be on the performance of the Cable bulls.
Gold And Ethereum Updates
Gold has experienced mild downward pressure due to the lack of clear direction in global markets following the Thanksgiving closure. Meanwhile, Ethereum achieved a scaling milestone as validators agreed to increase the block gas limit, reaching a consensus without major network changes.
UK and European stock indices are mostly lower post-Thanksgiving, with attention on the UK’s budget analysis. Ripple is experiencing slow momentum, trading at around $2.19, as resistance prevents further upward movement. The movement of markets highlights the anticipation and analysis following significant financial announcements and changes.
The steady rise in GBP/USD above 1.3200 is a clear signal for the coming weeks, driven by the increasing belief that the Federal Reserve will cut rates in December. The latest US CPI data for October 2025, which showed inflation slowing to 2.3% year-over-year, only adds fuel to this fire. This dollar weakness is the dominant theme we are watching.
In contrast, the Bank of England seems content to hold steady, with the market digesting a neutral UK budget and inflation still tracking at 2.9% according to the latest ONS report. This policy divergence, where the Fed is poised to ease while the BoE holds, creates a favorable environment for sterling against the dollar. We believe this difference in central bank outlook will be a primary driver of price action.
Trading Strategies And Market Outlook
For traders, this points towards strategies that benefit from further upside in GBP/USD, such as buying call options with January 2026 expiries. We saw a similar dynamic in the second half of 2019, when Fed rate cut expectations drove the dollar lower and pushed GBP/USD up by over 8% in the final quarter. The current thin holiday trading might offer a good entry point before liquidity returns.
The pair clearing key long-term moving averages strengthens the bullish case for those trading futures contracts. With the US dollar index (DXY) recently breaking below the 104.00 support level for the first time in months, the path of least resistance for GBP/USD appears to be upward. We are advising a focus on a potential move toward the 1.3500 level before the end of the year.
