The GBPUSD began the day weaker, slipping below its 100-day moving average at 1.34349. This move mirrored Friday’s dip under the same level, but sellers struggled to maintain their momentum. The pair then saw a recovery as buyers re-entered the market.<\/p>\n
On an intraday basis, the hourly chart shows the price surpassing the 100-hour moving average, initially a resistance earlier in the session. The upward movement has now approached the 200-hour moving average at 1.34834, a level that limited gains yesterday. Traders view this moving average as a resistance point, with risk situated slightly above it.<\/p>\n
A breach above the 200-hour moving average would be noteworthy, given its recent resistance role. It could shift sentiment from sellers to buyers, potentially leading to more upward momentum. If the 200-hour moving average holds and the price falls back below the 100-hour moving average, this would ease the current positive bias and reintroduce downward risk. <\/p>\n
Both buyers and sellers are focusing on this level.<\/p>\n
The immediate battle for derivative traders is at the 200-hour moving average around 1.34834. We see this as a clear line in the sand; sellers are defending it, but the rebound from below the 100-day moving average shows that buyers have not given up. This tug-of-war suggests that writing short-term options strangles could be a viable strategy to collect premium from the indecision.<\/p>\n
This technical picture is reinforced by the conflicting economic data we have seen this month in August 2025. The latest UK inflation report for July came in at 3.1%, which was slightly below expectations but still too high for the Bank of England to relax. Meanwhile, the most recent US Non-Farm Payrolls report showed job creation of just 195,000, missing forecasts and fueling speculation that the Federal Reserve may pause its own tightening cycle.<\/p>\n
Given this fundamental uncertainty, we believe establishing a position that profits from the range is wise for the coming weeks. An iron condor options strategy, with short strikes placed above 1.3500 and below the recent support near 1.3400, appears attractive. This allows us to benefit from the currency pair remaining pinned between these key technical and psychological levels.<\/p>\n
We have seen this pattern before, particularly during the volatile periods of 2023 when both central banks were signaling different policy paths. Back then, breakout trades were often faded, and strategies that sold volatility tended to outperform. We anticipate a similar environment now, where sharp moves in either direction lack the momentum to be sustained for long.<\/p>\n
Our trigger to shift this neutral stance would be a daily close above the 1.34834 level, which would signal that buyers have decisively won this round. Conversely, a rejection at this level followed by a break back below the 100-hour moving average would suggest sellers are regaining control. Until then, we will treat this as a range-bound market and position our derivative portfolios accordingly.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" GBPUSD rebounds, testing key resistance at 200-hour moving average; market sentiment hinges on this level.<\/p>\n","protected":false},"author":62,"featured_media":17032,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-29726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/29726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=29726"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/29726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17032"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=29726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=29726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=29726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}