All eyes are on price movements to see if the direction of the fluctuating GBP/USD pair will become clear
12.08.2025
- U.S. Consumer Price Index
- Euro ZEW Economic Sentiment Index
In the U.S. currency market yesterday, the U.S. dollar rose against the euro. The EUR/USD pair fell from 1.1675 to 1.1590.The price fell from the +2σ to the -3σ levels on the hourly Bollinger Bands. On the 4-hour chart, the price is currently facing resistance at the 200 SMA, while on the daily chart, both the highs and lows are trending lower, indicating a potential bearish flag pattern. On the weekly chart, the price is on the verge of breaking below the 10-day moving average (MA) that had been providing support, so traders should pay close attention to price movements during European trading hours.
Among European currencies, the pound traded in a narrow range against the U.S. dollar. The GBP/USD pair fluctuated between 1.3399 and 1.3476. Price action lacked direction as it moved back and forth across the 20-period moving average on the hourly chart. On the 4-hour chart, the pair has pulled back at the 200-period moving average overhead, and on the daily chart, it is in the midst of a downtrend that began last month, with lower highs forming.We will be watching to see if the pound regains momentum during today’s U.S. trading session.
Today’s schedule includes UK BRC same-store sales at 8:01, Japan’s money supply at 8:50, Australia’s NAB Business Confidence at 10:30, the RBA policy rate decision and statement at 13:30, RBA Governor Bullock’s press conference at 14:30, UKemployment data at 8:00, the German and Eurozone ZEW Economic Sentiment Indexes at 18:00, South African employment data at 18:30, the U.S. Consumer Price Index and Canadian housing permits at 21:30, and remarks by U.S. Federal Reserve Bank of Kansas City President Schmidt at 23:30.We will be watching price movements during U.S. trading hours to see if the direction of the GBP/USD pair, which has been trading in a tight range, becomes clearer.
Author: Keisuke Sakurai
