GBP/USD Forecast: Holding by a thread, bearish

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3803

The American dollar consolidates near its weekly high against most major rivals.
The US August Michigan Consumer Sentiment Index is expected at 81.2.
GBP/USD could accelerate its slump once below 1.3790, the immediate support level.

The GBP/USD pair consolidates at the lower end of its weekly range, trading around the 1.3800 level. Major pairs had been lifeless as volatility plummeted following the release of US July inflation, which spur some temporal and limited dollar’s weakness. However, the American currency has recovered most of the ground shed then and trades near weekly highs across the FX board. The pound is its weakest rival, while safe-haven JPY and Gold are the strongest.

Mixed UK data released on Thursday fell short of boosting sterling, despite signs of a firmer economic comeback in the second quarter of the year. The country won’t publish macroeconomic data on Friday, while the US will release the preliminary estimate of the August Michigan Consumer Sentiment Index, expected at 81.2.

GBP/USD short-term technical outlook

The GBP/USD pair is technically bearish and could extend its decline heading into the weekend. The pair posted a lower low at 1.3790, the immediate support level. In the 4-hour chart, the pair develops below all of its moving averages, with the 20 SMA heading firmly south between the longer ones. Technical indicators are directionless but remain within negative levels, reflecting bears’ dominance.

Support levels: 1.3790 1.3755 1.3710

Resistance levels: 1.3865 1.3910 1.3960

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD holds gains above 1.1400 on hawkish ECB expectations despite US-Iran tensions

The EUR/USD pair trades with mild gains around 1.1405 during the early Asian session on Wednesday. A hawkish tone from the European Central Bank provides some support to the Euro against the US Dollar. Traders await the upcoming ECB interest rate decision on Thursday.

Gold: Strong recovery might face roadblock as oil price extends gains

Gold price extends its winning streak for the third trading day on Wednesday, trading 1.5% higher to near $4,140 during the Asian session. The precious metal recovered strongly in the past few trading days from its three-week low of $3,959.80 as traders scaled back Federal Reserve’s interest rate hike expectations for the monetary policy meeting next week.

Bitcoin extends gains, Ethereum and XRP target breakout moves

Bitcoin, Ethereum and Ripple remain on the front foot on Wednesday as the broader crypto market extends its gains so far this week. BTC leads gains after closing above key resistance while ETH and XRP near key technical hurdles where a breakout could pave the way for additional gains.

UK CPI set to show receding inflation in June as GBP/USD fails at May highs

The UK Office for National Statistics will release the June Consumer Price Index figures on Wednesday at 06:00 GMT, a print that will matter for markets. Consensus expectations point to inflation pressures still above the Bank of England’s target, although losing further momentum.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.