Key Highlights
- GBP/USD seems to be forming a double top pattern at 1.3590.
- A declining channel is forming with resistance at 1.3510 on the 4-hour chart.
- Bitcoin declined below the $118,500 and $115,500 support levels.
- Ethereum started a downside correction and traded below $4,250.
GBP/USD Technical Analysis
The British Pound failed to continue higher above 1.3590 against the US Dollar. GBP/USD seems to be forming a double top pattern at 1.3590 and is at risk of a bearish reaction.
Looking at the 4-hour chart, the pair corrected some gains and traded below the 1.3525 support level. There was a move below the 23.6% Fib retracement level of the upward move from the 1.3139 swing low to the 1.3594 high.
However, the pair is still above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). On the downside, immediate support is 1.3450.
The next key support sits at 1.3420 and the 100 simple moving average (red, 4-hour). Any more losses could send the pair toward the 61.8% Fib retracement level of the upward move from the 1.3139 swing low to the 1.3594 high at 1.3310.
On the upside, the pair now faces resistance near the 1.3510 level and a declining channel. The next key resistance sits near 1.3540. A close above 1.3540 could set the pace for another increase. In the stated case, the pair could rise toward 1.3590, above which the bulls could aim for a move toward 1.3680.
Looking at EUR/USD, the pair started a downside correction, but the bulls were able to protect the 1.1600 support.
Upcoming Key Economic Events:
- Euro Zone Manufacturing PMI for August 2025 (Preliminary) – Forecast 49.5, versus 49.8 previous.
- Euro Zone Services PMI for August 2025 (Preliminary) – Forecast 50.6, versus 51.0 previous.
- UK Manufacturing PMI for August 2025 (Preliminary) – Forecast 48.3, versus 48.0 previous.
- UK Services PMI for August 2025 (Preliminary) – Forecast 52.0, versus 51.8 previous.
- US Manufacturing PMI for August 2025 (Preliminary) – Forecast 49.5, versus 49.8 previous.
- US Services PMI for August 2025 (Preliminary) – Forecast 54.2, versus 55.7 previous.
- US Initial Jobless Claims – Forecast 225K, versus 224K previous.
