Should we be wary of the pound's downside potential against the U.S. dollar?

Should we be wary of the pound's downside potential against the U.S. dollar?

09.10.2025

In the previous day's U.S. currency trading, the U.S. dollar rose against the yen.The USD/JPY pair rose from 151.733 to 152.995. The uptrend along the 10-period moving average (MA) on the hourly chart continued. On the 4-hour chart, the price is trending upward along the 10-period MA, and the RSI has surged to 82. On the daily chart, the candlesticks have reached the +3σ level of the Bollinger Bands. Furthermore, since the decline during today’s Asian session has been limited to a mild correction, we should remain vigilant for a further rise in the US dollar during US trading hours.

Among European currencies, the pound fell against the U.S. dollar. GBP/USD dropped from 1.3438 to 1.3371. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the pair has pulled back after encountering resistance at the 200-period simple moving average (SMA), and on the daily chart, it appears to be entering a downtrend along the 20-period moving average (MA). Furthermore, on the weekly chart, the pair is on the verge of breaking below the 20-period MA support line, so traders should pay close attention to the direction of the market during European trading hours.

Today’s economic indicators include the UK RICS House Price Index at 8:01, Japan’s Foreign and Domestic Securities Investment at 8:50, Germany’s Trade Balance at 15:00, remarks by a member of the UK’s MPC at 17:30, South Africa’s Manufacturing Production at 20:00, and at 20:30, theECB Governing Council Meeting Minutes, 9:30 PM: US Fed Chair Powell’s remarks, 9:35 PM: US Fed Vice Chair Bowman’s remarks, 1:45 AM: US Fed Governor Barr’s remarks, 2:00 AM: US 30-year Treasury auction, US Kashkari:Minneapolis Fed President, and at 02:45, remarks by U.S. Fed Vice Chair Bowman are scheduled. Keep an eye on the downside potential for the pound, which has fallen against the U.S. dollar.

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