GBP Losing Steam Versus the Dollar 8/7/2025

Timeframe: 4-Hour Chart

The British pound continued to post gains against the U.S. dollar in the previous session, reaching a high of 1.3658, supported by ongoing bullish momentum. However, signs of consolidation are beginning to emerge.

Technical Indicators

• The 50-day simple moving average is aligning with the 1.3675 resistance level, reinforcing it as a solid technical ceiling.
• The Relative Strength Index (RSI) is showing early signs of negative divergence, which may indicate weakening upward momentum.

Bearish Scenario
A confirmed break below 1.3600 could initiate a downward move, potentially targeting:

• 1.3585 as the first support
• 1.3540 as the second support level

Bullish Contingency
Should the price maintain support above 1.3670 and regain bullish momentum, a short-term recovery may develop, aiming for:

• 1.3705 as the initial upside target
• 1.3755 if bullish pressure intensifies

Conclusion
Short-term direction remains uncertain. A break below 1.3600 supports a bearish view, while stability above 1.3670 revives the bullish case.

Warning
Market conditions remain volatile amid global trade and geopolitical tensions. All scenarios are possible. Risk management is essential.

Disclaimer: Trading in CFDs carries inherent risks. The analysis provided herein is not a recommendation to buy or sell, but rather an interpretation of the current price movement on the chart.

S1: 1.3585	R1: 1.3670
S2: 1.3540	R2: 1.3705
S3: 1.3500	R3: 1.3755