GBP/USD: Bulls push to test 1.2780 – UOB Group

FXStreet Insights Team FXStreet

Oversold decline has not stabilised; the Pound Sterling (GBP) could drop further to 1.2645. The next major support at 1.2610 is highly unlikely to come into view, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.

GBP may test 1.2780 in short term

24-HOUR VIEW: “We did not anticipate GBP to drop sharply to 1.2674 yesterday (we were expecting sideways trading). While the decline is oversold, it has not stabilised. Today, GBP could drop to 1.2645 before stabilisation can be expected. The next major support at 1.2610 is highly unlikely to come into view. Resistance is at 1.2710; a breach of 1.2735 would suggest that the weakness in GBP has stabilised.”

1-3 WEEKS VIEW: “We have held a negative view in GBP since 26 Jul, when it was trading at 1.2855. After GBP tested the 1.2710 level twice and rebounded, we indicated yesterday (06 Aug, spot at 1.2790) that ‘downward momentum has slowed, and there is a low confidence of a sustained break below 1.2710.’ However, GBP lurched lower in London trade, broke below 1.2710, reaching a low of 1.2674. The rejuvenated momentum indicates that the risk remains on the downside. The levels to watch are 1.2645 and 1.2610. The latter level is solid support (near June’s low). The downside risk will remain intact as long as 1.2780 (‘strong resistance’ level previously at 1.2840) is not breached.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD regains mild traction, falters near 0.7150

AUD/USD gathers some steam and manages to flirt with the 0.7150 level on Thursday. However, the pair has retraced some of Wednesday’s significant pullback due to renewed selling pressure on the Greenback and a slight improvement in risk sentiment following hopes of a deal in the Middle East. Wrapping up the Australian docket, the RBA’s Hauser will speak early on Friday.

USD/JPY trades below 160.00 intervention threshold; bullish bias intact

The USD/JPY pair attracts some sellers during the Asian session amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, the Israel-Lebanon truce prompts some profit-taking around the US Dollar and exerts downward pressure on the currency pair.

Gold puts its 200-day SMA to the test near $4,420

Gold keeps the bullish stance in place in the latter part of Thursday’s session, although a convincing break above the key $4,500 mark per troy ounce still remains elusive. The precious metal’s advance comes amid the resurgence of some selling interest around the Greenback, improving risk sentiment, and declining US Treasury yields across the board.

XRP plummets as ETF outflows, geopolitical tensions reinforce bearish outlook

Ripple (XRP) edges lower, trading around $1.15 at the time of writing on Thursday, its lowest price since February 6. The cross-border money remittance token is extending the sell-off for the fifth consecutive day, reflecting persistent headwinds from ongoing geopolitical tensions and investor uncertainty.

Nonfarm payrolls: Testing the limits of Fed policy patience

The upcoming nonfarm payrolls report for May will provide the final update on the US labor market before Kevin Warsh attends his first policy meeting as the new Fed Chair later this month.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.