Will the market wait and see how much room for recovery remains in the pound-dollar pair, which has been fluctuating?

Will the market wait and see how much room for recovery remains in the pound-dollar pair, which has been fluctuating?

12.12.2025

In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 156.161 to 154.943, falling along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price fell just below the support line formed by the 200-period simple moving average (SMA), and on the daily chart, it temporarily broke below the 20-period MA, which had previously provided support. During today’s Asian trading session, the pair has rebounded by only about 30 pips.

Among European currencies, the pound saw a seesaw movement against the U.S. dollar. The GBP/USD pair rose from 1.3354 to 1.3438. After climbing along the 20-period moving average on the hourly chart, it plummeted. On the 4-hour chart, a sharp decline followed a touch of the +3σ Bollinger Band, and on the daily chart, the pair is currently pulling back from levels not seen since October 20 of this year.On the weekly chart, the pair remains above the 20-day moving average.

Today’s economic indicators include Japan’s industrial production at 1:30 PM, UK industrial production, UK manufacturing output, UK GDP, and UK goods trade balance at 4:00 PM, Germany’s consumer price index at 4:45 PM, France’s consumer price index at 4:45 PM, and U.S. Paulson:Remarks by Paulson, President of the Philadelphia Fed; at 22:30, Canadian Wholesale Sales, Canadian Housing Starts, and Canadian Q3 Capacity Utilization; remarks by Hammack, President of the Cleveland Fed; and at 24:35, remarks by Goolsbee, President of the Chicago Fed. I intend to wait and see how much room for recovery remains in the GBP/USD pair, which has been trading in a range.

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