Will the pound’s upward momentum against the U.S. dollar continue?

Will the pound’s upward momentum against the U.S. dollar continue?

26.07.2022

In yesterday’s trading, the U.S. dollar weakened against European currencies, with the GBP/USD pair rising from 1.1959 to 1.2086. Technically, the GBP/USD pair is trading just below the 200-period simple moving average (SMA) on the 4-hour chart. However, on the weekly chart, it has touched the -2σ line of the Bollinger Bands, and the RSI is at a low level of 32. Therefore, we will be closely monitoring whether the upward rebound will continue.

European currencies fell against the Australian dollar after Germany’s July Ifo Business Climate Index, released yesterday, came in below the previous reading at 88.6—its lowest level in two years. The EUR/AUD pair dropped by approximately 130 pips from 1.4802 to 1.4677.The pair continues to test lower levels during today’s Asian session. If EUR/AUD breaks below the recent low of 1.4602, it could lose support and accelerate its decline, so we should closely monitor the direction of the market.

Today’s schedule includes the UK CBI Retail Trade Survey at 19:00 CET, the Turkish Housing Price Index at 20:30 CET, the US S&P/Case-Shiller Home Price Index at 22:00 ET, the US Consumer Confidence Index, New Home Sales, and the Richmond Fed Manufacturing Index at 23:00 ET, and the US 5-year Treasury auction at 02:00 ET.We will be watching closely to see if the pound, which has been showing strength, will rebound and rise against the US dollar.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?