GBP/USD Stuck Near 1.35 as UK Data and BoE Outlook Drive Market
The GBP/USD exchange rate has been range-bound, holding near 1.35 as the UK releases trade and industrial production data on Friday.
Market participants are expecting a Bank of England meeting on Thursday, where interest rates will be discussed, but it's not an Monetary Policy Report (MPR) session. They're pricing in around 19bps of tightening by the November decision, which could lead to a 25bp rate increase.
The pair has been stuck within an ascending channel since late June, with resistance at mid-1.35s and support in the upper-1.34s. The relative strength index is near 50, indicating neutral momentum.
Derivative traders are recommended to use short-term range-bound options strategies, such as iron condors or strangles, to capture premium while the exchange rate remains coiled.