Pound Sterling Under Pressure Against the Dollar – 21/08/2025

The GBP/USD pair has successfully reached its first downward target at 1.3445, as we noted in the previous report. It is currently stabilizing near its lowest levels, around 1.3447.

Technical Outlook – 4-Hour Timeframe

Continued trading below the Simple Moving Average reinforces the possibility of a continued downward path, especially with the negative signals coming from the Relative Strength Index after selling off from the overbought area. This supports the likelihood of extended selling pressure.

Probable Scenario

Bullish Scenario: As long as the price remains below 1.3490, and more importantly below 1.3500, the downward trend is most likely to dominate. This targets 1.3420 as the first support level, followed by 1.3365 as the next support.

Bearish Scenario: Conversely, a confirmed break above 1.3500 with a one-hour candle close above it could reverse the downward trend, paving the way for a retest of 1.3560 as an initial target.

Fundamental Note:

Today, we are awaiting high-impact economic data from the US economy: “Weekly Unemployment Claims, Preliminary Reading of the Services and Manufacturing PMI.” This data may cause strong price volatility when released.

Warning

The risk level is high amid ongoing trade and geopolitical tensions, and all scenarios may be plausible.

Disclaimer

Trading CFDs involves risks, and therefore all scenarios may be plausible. The information provided above is not a recommendation to sell or buy but rather an explanatory reading of price movement on the chart.

S1: 1.3420	R1: 1.3515
S2: 1.3365	R2: 1.3560
S3: 1.3340	R3: 1.3590