The Pound Sterling (GBP) may rise further, but it is unlikely to break above the 1.3175 mark. Analysts at UOB Group suggest that the previous weakness of GBP has ended and it may recover, yet this is likely to stay within the range of 1.3050 to 1.3220.
Over the past 24 hours, GBP rose sharply to a high of 1.3142, ending at 1.3140 with an increase of 0.67%. Despite this increase, a break above 1.3175 is unlikely soon. The support level stands at 1.3120, and falling below 1.3095 would indicate further rise is improbable.
GBP Recent Trend
In the past weeks, GBP maintained a negative trend. Analysts noted if GBP surpassed 1.3120, its weakness would have concluded, leading to a partial recovery within a range of 1.3050 to 1.3220. While there is potential for GBP to recover, reaching beyond 1.3220 is unlikely.
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Given that today is November 7, 2025, we see that the Pound’s recent weakness has likely concluded. The sharp upward move that broke through the 1.3120 resistance level confirms this shift in momentum. However, we do not expect a new, sustained bull run from this point.
This outlook is reinforced by the latest UK inflation data, which showed headline CPI easing to 2.8% last month, slightly below forecasts. This reduces pressure on the Bank of England to pursue further aggressive rate hikes, effectively capping the Pound’s potential upside near the 1.3220 mark. Therefore, selling out-of-the-money call options or implementing bear call spreads with strike prices above 1.3225 could be a prudent strategy over the next few weeks.
Strategies for GBP/USD
On the other side of the pair, last week’s US Non-Farm Payrolls report came in at a steady 195,000, which suggests the Federal Reserve is comfortable holding interest rates steady for now. This provides a solid floor for the US dollar, making a sustained break below the 1.3050 support level for GBP/USD unlikely. This stability at the bottom of the range supports the idea of selling put options below 1.3050.
With the pair expected to be range-bound, strategies that profit from low volatility, such as short strangles or iron condors, appear attractive. One-month implied volatility for GBP/USD has already fallen to 6.5%, making it cheaper to initiate positions but also suggesting that option premiums are lower. This environment rewards traders who believe the 1.3050 to 1.3220 range will hold firm.
We have seen this type of price action before, particularly during the consolidation period in mid-2024 after both central banks had signalled a pause in their rate-hiking cycles. During that time, the pair traded sideways for several months, rewarding range-trading strategies. The current economic data from both the UK and US suggests a similar period of consolidation may be ahead of us.
Traders should monitor the key levels of 1.3220 and 1.3050 closely. A daily close above the upper bound or below the lower bound would signal that our range-bound thesis is no longer valid. In that scenario, positions would need to be adjusted quickly as a new trend could be emerging.
