GBPUSD:
On October 14, 2025, the pound has recovered to 1.3330–1.3340, retracing as worries over a tariff flare-up between the US and China eased. The retreat of some safe-haven demand for the dollar and stabilization in global risk appetite supported sterling, while the market closely assesses fresh UK labor data and the government’s autumn fiscal outlook.
Domestically, wage growth and services inflation remain pivotal. As long as these components stay elevated, expectations for rapid Bank of England easing are limited, which helps prevent deeper GBP declines. At the same time, a better global risk backdrop and renewed interest in European assets create a window for moderate GBP/USD upside.
The external backdrop is neutral-to-positive: reduced tariff tension and the absence of unexpectedly restrictive signals from the Federal Reserve encourage the market to probe higher levels in the pair. Under these conditions, an upside scenario looks preferable with careful risk control.
Trading recommendation: BUY 1.3335, SL 1.3315, TP 1.3395
Origin: FreshForex
