Insights 
VT 
Pound Sterling (GBP) is expected to trade between 1.3385 and 1.3435. If GBP surpasses 1.3475, it may continue to 1.3505 and potentially reach 1.3530.
In the past 24 hours, GBP fluctuated between 1.3400 and 1.3442, ending at 1.3404 with a decrease of 0.26%. Current indicators suggest it will remain within the 1.3385 to 1.3435 range.
Longer Term Observations
Longer-term observations indicate that despite a slowdown, GBP could surpass 1.3475 if it stays above the strong support at 1.3360. The view remains optimistic about the possibility of an increase.
This analysis is compiled by the FXStreet Insights Team, which includes observations from numerous market experts and researchers.
We see the Pound trading sideways for now, likely staying between 1.3385 and 1.3435. This suggests that short-term options strategies betting on low volatility could be considered. However, the underlying tone remains firm, pointing to a potential upward move in the coming weeks.
If We See A Sustained Break Above
If we see a sustained break above 1.3475, we anticipate a rally towards 1.3505. Recent UK inflation data, which came in last week at 3.1%, supports the Bank of England’s hawkish stance and strengthens this view. Therefore, buying call options with a strike price around 1.3500 could prove profitable if that resistance level is breached.
On the other hand, the key level to watch is the strong support at 1.3360. A break below this would invalidate our bullish outlook and could signal further weakness. Traders might consider buying puts below this level as a hedge, especially as the latest US jobs report from early October 2025 showed a slight slowdown in hiring, which could introduce dollar volatility.
The current tight range has kept short-term volatility relatively low, but the potential for a breakout suggests this may not last. We have noticed one-month implied volatility for GBP/USD has already ticked up to 8.2% this week, indicating the market is pricing in a bigger move. A long straddle strategy, buying both a call and a put, could be effective to capture a sharp move in either direction.
This price action is reminiscent of the consolidation we observed during the summer of 2024, which was followed by a significant trend. Back then, the pair coiled in a narrow range for several weeks before breaking out. As before, patience is required, but we should be prepared for the range to resolve itself with a decisive move.
