GBP/USD Slides; Key Support at 1.3450, Eyes on 1.3600 Resistance Level

The British Pound (GBP) continued to decline against the US Dollar (USD) for the third day in a row, marking its fourth fall in the last five days. In the Asian market on Wednesday, the GBP/USD pair reached its lowest level in over a week, around 1.3500. Commentators point out that this aligns with ongoing demand for the US Dollar, which in turn is weighing negatively on the Pound. The market remains on high alert, awaiting UK consumer inflation figures that could trigger volatility in the currency pair in the coming sessions.

The price attempted to move higher toward 1.3600 last week but failed, creating a bearish double-top pattern, which typically signals further downside. Following this, the pair dropped below the 23.6 percent Fibonacci retracement level of the recent rally at 1.3140, which makes a stronger argument in favour of further falls. Analysts note that some optimistic signals remain visible on the daily chart through technical indicators (oscillators). This suggests the market may not decline too steeply right away, and traders should remain cautious before the bearish trend strengthens.

Marketer observers believe that the slide may be just a short term movement of the currency pair GBP/USD. Some analysts suggest that investors may look to enter around the 1.3450 support level, where further losses could be limited. Reports point out that more backing should be expected around the 1.3420 to 1.3415 levels, where the 38.2% Fibonacci retracement marks a very important technical indicator. A move below 1.3400 could indicate that the pair has recently peaked. This would probably instigate increased selling force, and result in a bigger drop in GBP/USD.

Analysts observed that the GBP/USD currency pair has reached very significant price levels. If the pair bounces back and holds above the 23.6% Fibonacci retracement level at 1.3500, it may encounter resistance near 1.3530. If the buyers make a further increase beyond this point, the price may reach the levels of 1.3575-1.3580. It may then be a stronger push to pick up the key 1.3600 level. Breaking above 1.3600 would be significant since it would remove negative pressure and make chances for the pair’s rally last month to continue higher.

JPY Gains as USD/JPY Nears 147; Key Resistance at 148.55-148.60 Eyed

On Wednesday, the Japanese Yen (JPY) continued to gain momentum for the second consecutive day and dragged USD/JPY by dropping it around 147.15. The initial moves are believed to have occurred following mixed Japanese economic data but were short-lived. According to experts, the likely cause is growing market expectations that the Bank of Japan (BoJ) will pursue further policy normalization and may even tighten its monetary stance by the end of the year. In the meantime, demand for the Yen is believed to be growing as investors seek safe-haven assets amid caution in global markets.

At the same time, some reports highlight that the Yen remains under pressure after losing part of its safe-haven appeal amid optimism about a potential Russia-Ukraine peace deal. The US Dollar (USD) meantime is gaining strength, with this currency attaining the top price level in more than a week. This comes as markets scale back forecasts of larger interest rate cuts by the Federal Reserve (Fed). Nonetheless, traders remain cautious and await the publication of the latest Fed meeting minutes and Jerome Powell’s speech at Jackson Hole to obtain more definite policy indications.

According to the reports, USD/JPY was unable to stay above the level of 148.00 on Tuesday, which indicated bearish action. But on a daily chart, the oscillators are neutral thus indicating uncertainty. It is assumed that the currency pair in the last two weeks has been in a sideways trend with no certain direction in the moving range. Global commentators believe that traders are cautious and await more selling momentum, or confirmation, before assuming further downside moves since current signals are not quite compelling on their own.

Market participants have noted that the USD/JPY pair is trading between 147.10 and 147.00, which provides near-term support. Analysts point out that if the price breaks below this range, it may decline further towards the recent low at 146.20. Further declines below 146.00 could trigger a broader downswing, signaling stronger selling pressure and extended weakness in the pair. Such levels are closely watched by marketers, although market observers remain focused on the direction of the next significant price movement.

Analysts believe that as long as the USD/JPY reaches and sustains an increase above 148.00, traders are likely to make more bets. This may drive the price close to the 148.55-148.60 level, a key resistance area. In case the momentum remains bullish, the pair could then attempt an extension towards the 149.00 psychological level, signalling potential for further gains.

USD/CAD Rises Amid Fed Anticipation, Geopolitical Hopes, and Weak Canadian CPI

The USD/CAD rose on the second consecutive day and traded around 1.3870 during the Asian trading hours on Wednesday. This rise was expected because the US Dollar tends to gain before the US Federal Reserve (Fed) meeting minutes that are to be released in July and that hands hold the indication of the prospects in the interest rate changes. Traders are also looking ahead to the Jackson Hole Economic Symposium on Thursday. Remarks from Federal Reserve Chair Jerome Powell at the event will be closely monitored, and they may provide a hint of the policy action of the central bank which is scheduled in September.

It is believed that the Greenback (US dollar) strengthened as new geopolitical news transpired. The White House has revealed that Russian President Vladimir Putin and the president of Ukraine Volodymyr Zelenskyy will meet bilaterally which may potentially aid peace negotiations. Meanwhile, President Donald Trump announced that there will be no deployment of US troops in Ukraine to impose a peace settlement of any kind. Rather, the United States and its European allies as well as Ukraine engaged in a security-guarantee debate. Hopes of improving diplomatic developments and a minimal US military presence had a positive effect on markets and the overall power of the US dollar increased as investors responded to a decreased amount of uncertainty and continuity of negotiations.

The Canadian Dollar (CAD) is believed to have declined due to new inflation data that showed weaker price growth. According to reports, Canada’s Consumer Price Index (CPI) climbed 1.7% in July compared to the previous year, down from 1.9% in June and in line with expectations. On a monthly basis, inflation climbed slightly, rising 0.3% vs 0.1% previously. Core CPI, which excludes food and energy, increased 2.6% year on year and only 0.1% month on month. Market experts pointed out that the lower data raised expectations that the Bank of Canada (BoC) might keep its dovish stance, impacting the CAD.

EUR/USD steadies near 1.1680 amid Ukraine peace hopes and Fed watch

The EUR/USD traded slightly higher around 1.1680, after dipping to 1.1640 earlier. It is observed that optimism from the US-Ukraine peace talks and stronger Eurozone current account data has boosted the Euro. Traders are wary of expectations surrounding the US Federal Reserve Minutes and the Jackson Hole Symposium, with geopolitical events and central bank developments likely to lead to the next set of actions in the currency pair.

Reports indicate that the meeting between Donald Trump and Volodymyr Zelenskyy in February was friendly and positive. Smiles and warm behaviors set the stage before Trump promised that, in any peace deals between Russia and Ukraine, the United States would ensure the security of the Ukrainian state. Trump also stressed that the logical next step would be direct negotiations between Ukrainian and Russian representatives that would resolve the conflict.

It is observed that Eurozone leaders reacted positively to the recent meeting. Reports say that U.S. and EU leaders have reached an agreement to begin working immediately on long-term security guarantees for Ukraine. Such decisions mean increased military support and assistance to Ukraine, with fewer restrictions on further aid in its war with Russia.

International analysts believe that money markets remain calm despite the heightened world political tensions. As a result, the currency pair has barely made any progress in Asian trading, and it is likely to remain in a tight range given that Europe will be on holiday. Today, there are few economic events, and the focus will be on a speech by Fed Vice Chair Michelle Bowman. Later this week, investors will be awaiting speeches by ECB President Lagarde and Fed Chair Powell.

It is noted that EUR/USD is trading between support and resistance levels, exhibiting no clear momentum. The pair is trading above 1.1630, with further support at 1.1590, followed by 1.1530 if bears push lower. Analysts point out that buyers need to surpass the 1.1720–1.1730 range to gain momentum, potentially paving the way to 1.1789 and 1.1830. Technical indicators such as RSI and MACD are showing indecision, currently positioned near neutral levels. The current price remains within last week’s range, poised to break lower at 1.1630 or higher at 1.1730, signalling whether bears or bulls will gain control.