Should investors be wary of further downside potential for the pound, which has plummeted against the U.S. dollar?

Should investors be wary of further downside potential for the pound, which has plummeted against the U.S. dollar?

22.10.2025

In the U.S. currency market yesterday, the U.S. dollar rose against the yen. The USD/JPY pair rose from 150.473 to 152.183. An uptrend has emerged along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 200-period exponential moving average (EMA) is acting as a support level, leading to a rebound, and similar price action is being observed on the daily chart. Additionally, on the monthly chart, the RSI is approaching the upper trendline.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3416 to 1.3361. The decline followed the 10-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair is declining as it faces resistance at the 20-MA, and the daily chart shows a similar price movement to the 4-hour chart. Furthermore, as a significant decline toward this month’s low has been observed during today’s Asian session, caution is advised regarding the possibility of a sharp drop during the European session.

Today’s economic indicators include remarks by German Bundesbank President Nagel at 7:00, Japan’s customs-based trade balance at 8:50, the UK’s Consumer Price Index, Retail Price Index, and Producer Price Index at 15:00, South Africa’s Consumer Price Index at 17:00, the US MBA Mortgage Applications Index at 20:00, and at 21:25, the EU’sECB President Lagarde’s remarks at 23:30, U.S. weekly crude oil inventories at 25:35, remarks by Fed Governor Barr at 26:00, and a U.S. 20-year Treasury auction at 26:00. We should pay close attention to the downside potential for the pound, which has plummeted 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