Paul Spirgel

Sterling is likely to remain confined to near-term ranges as repeated failures by bears to sustain momentum below the psychological 1.3400 threshold and bulls' inability to take out resistance above 1.35, leave the currency lacking a clear directional catalyst. The pound edged slightly lower following less-hawkish commentary from Bank of England Governor Andrew Bailey, who signaled that policymakers feel no immediate urgency to raise interest rates. Tempering an otherwise

Sterling is poised to remain range-bound in the near term, with GBP/USD likely oscillating within its established 1.33–1.35 band as markets await clearer signals from geopolitical developments and key inflation data.

Bitcoin has lost half its value since hitting an all-time high in October, and the cryptocurrency's tailspin could deepen if it falls convincingly through ​important levels it has been circling in recent days.

GBP/USD faces continued near-term pressure, with the pair likely to remain confined to the lower end of its recent 1.33–1.35 trading range as geopolitical volatility, divergent central bank trajectories, and persistent inflation concerns weigh on sentiment.

Sterling is poised for continued downside pressure against the U.S. dollar in the near term, as a confluence of geopolitical anxieties, domestic headwinds, and monetary policy divergence weigh on GBP/USD.

The near-term outlook for sterling has reverted to caution as fluid geopolitical developments remain a top source of market uncertainty.

(Adds slug) Sterling faces a mixed outlook in the near term as geopolitical optimism clashes with looming domestic political risks and a shifting monetary policy landscape. The pound nudged higher, rising to 1.3460 in Asia session trading, the high end of its recent range, propelled by a sharp improvement in broader market sentiment following the announced, but not yet signed, U.S.-Iran peace deal.

Sterling may find renewed upside in the near-term as Middle East de-escalation, lower oil prices, and shifting monetary policy expectations on both sides of the Atlantic combine to support the pound against the dollar. The recent signing of the U.S.-Iran memorandum of understanding has catalysed a meaningful decline in oil prices, providing broad relief to risk sentiment and potentially alleviating persistent inflationary pressures in the UK and globally. Should the drop in oil accelerate the disinflationary trend, the Bank of England's current hawkish stance — with one rate hike priced in by the October MPC meeting — is likely to soften.

Sterling faces an increasingly challenging near-term outlook, navigating a fluid monetary policy landscape and lingering geopolitical risks as dollar strength and domestic political risks weigh on the pair.

Sterling weakened on Tuesday, as a broad AI-driven equities selloff boosted the dollar, and faces a challenging outlook over the next week or so as the market awaits more news on the next UK government after the resignation of Keir Starmer.