Fundamental Market Analysis for October 17, 2025 GBPUSDThe pound trades above 1.34000, responding to broad US dollar weakness and moderately positive signals from the UK economy. Recent GDP prints point to a slight pickup in activity late in the summer, helping sterling stay at the upper end of the weekly range. On the pound’s side are stable short-term UK gilt yields and a lower risk premium for the dollar. Live quotes confirm a 1.34300–1.34500 range.
Demand for GBP is also supported by expectations of a cautious stance at the Bank of England: the regulator seeks to keep inflation on a downward path without abrupt moves, while markets gradually price later timing for any potential easing. Meanwhile, the external agenda (US–China trade issues, swings in global equity indices) reduces the dollar’s appeal as a defensive asset, indirectly facilitating sterling’s advance.
The US backdrop adds to GBPUSD’s fundamental case: prolonged budget uncertainty and softer-sounding remarks from some Fed officials reduce the yield advantage in favor of the dollar. This keeps the door open for a move toward 1.35000, provided there are no negative surprises from the UK side.
Trading recommendation: BUY 1.34450, SL 1.34250, TP 1.35150.
