Will the pound, which has been weakening against the U.S. dollar, recover, or should we wait and see?

Will the pound, which has been weakening against the U.S. dollar, recover, or should we wait and see?

26.08.2025

In the U.S. currency market yesterday, the U.S. dollar reached its strongest level during U.S. trading hours after the July new home sales figure, released yesterday, came in at 652,000—exceeding the market forecast of 629,000 and rising from the previous month’s 627,000. The USD/JPY pair rose from 146.779 to 147.903, moving from below the 20-period moving average (MA) on the hourly chart to above it.On the 4-hour chart, the price has recovered to around the midpoint of the range from last weekend’s sharp decline, while on the daily chart, it has returned to just below the 20-day moving average.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3528 to 1.3447, breaking well below the support level provided by the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, while the 200-period SMA is acting as a support level, the price has pulled back from the +2σ line of the Bollinger Bands. On the daily chart, the price is currently in the process of forming lower highs since early last month.

Today, the Japanese Corporate Services Price Index will be released at 8:50, the RBA minutes at 10:30, U.S. durable goods orders at 21:30,at 10:00 PM the U.S. Q2 Housing Price Index and the U.S. S&P/Case-Shiller Home Price Index, at 11:00 PM remarks by a member of the Bank of England’s Monetary Policy Committee (MPC) and the U.S. Richmond Fed Manufacturing Index, the U.S. Conference Board Consumer Confidence Index, at 2:00 AM the U.S. 2-year Treasury auction, and at 3:30 AM remarks by Bank of Canada Governor Macklem.I want to wait and see whether the pound, which has been weakening against the US dollar, will show signs of recovery.

Past Market Reports

1. 17.04.2026New

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

2. 16.04.2026New

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

3. 15.04.2026New

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

4. 14.04.2026New

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

5. 13.04.2026New

   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

6. 10.04.2026

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

7. 09.04.2026

   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?

8. 08.04.2026

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

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed