The GBPUSD currency pair experienced a rise this week, nearing the 50% retracement level at 1.3463. The current high stands at 1.3458, with recent lows recorded at 1.32594 earlier in the week.
Recent movements were influenced by the Bank of England’s rate cut of 25 basis points, with a 5–4 vote. The rate cut was followed by a rise to and beyond the 100-day moving average, with trading now slightly below the high at 1.3446.
Support Levels For GBPUSD
Support for a pullback could be found at the 38.2% retracement level, crossed earlier in the week at 1.3386, and the 100-day moving average at 1.3359.
A breakthrough above the 50% retracement level might lead traders to target the 61.8% level at 1.3540 and potentially the high from July 23 at 1.3588. Notable achievements include moving beyond the 100 and 200-hour moving averages and surpassing the 38.2% retracement.
Challenges remain at the 50% retracement level, but past developments have provided momentum in the bullish direction for GBPUSD. Traders are advised to remain observant and prepared for changes in the market early next week.
Current Market Overview
From our current perspective on August 8, 2025, the GBP/USD is at a critical turning point. The pair is hesitating right below the 1.3463 resistance level, which represents a major 50% retracement. The immediate test for traders in the coming week will be whether this ceiling holds or breaks.
The pound’s recent strength is underpinned by the Bank of England’s actions earlier this month. The BoE’s surprisingly narrow 5-4 vote for a rate cut was seen as hawkish, suggesting reluctance to ease policy further. This view is supported by the latest UK inflation data for July 2025, which came in at a sticky 2.4%, keeping pressure on the central bank.
Conversely, the US dollar has shown some softness, helping to push this pair higher. The most recent US jobs report for July 2025 showed that Non-Farm Payrolls rose by a modest 170,000, below expectations. This reinforces the market’s belief that the Federal Reserve will likely hold rates steady through the autumn.
For traders anticipating a continued rise, a decisive break above 1.3463 could be a trigger to consider buying call options. A sustained move would bring the next targets at 1.3540 and then 1.3588 into play. The bullish momentum has been building since the price successfully based above its 100-day moving average.
However, if this 1.3463 level proves to be strong resistance, we could see a pullback. Traders looking to hedge or speculate on a downturn might consider put options if the price is rejected and moves back toward support. Key levels to watch on the downside are the 1.3386 area and the 100-day moving average just below it at 1.3359.
We must remember the pound’s capacity for sharp moves, as seen during the significant repricing events of 2022. While the current rally is encouraging for bulls, the stall at this 50% Fibonacci level is a classic signal for caution. Be aware and be prepared for either a breakout or a reversal early next week.
