**Pairs in Focus: 3rd to 8th August 2025 – Weekly Forex Technical Analysis**
*By: Adam Lemon, DailyForex.com*
As traders prepare for the week spanning August 3rd to August 8th, 2025, the global foreign exchange market stands at a crucial juncture. Central banks are carefully navigating inflationary concerns, while key economic data releases will shape short-term currency trends. This week’s technical analysis surveys critical currency pairs, taking into account where momentum and technical patterns may offer trading opportunities. The following breakdown, as originally analyzed by Adam Lemon for DailyForex.com, delves into the most noteworthy forex pairs for the week.
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**1. EUR/USD**
*Summary:*
The EUR/USD pair remains at the center of attention amid ongoing uncertainty surrounding the Eurozone’s growth prospects and the US Federal Reserve’s forthcoming policy decisions. Last week, the euro maintained resilience near multi-week highs; however, the rally faded near 1.0940, leading to renewed consolidation.
*Key Technical Levels:*
– **Support:** 1.0850; a clear break could trigger decline toward 1.0780.
– **Resistance:** 1.0940 is the short-term barrier, followed by the psychological 1.1000.
– **50-Day Moving Average:** Now trending around 1.0855, providing dynamic support.
– **RSI (Relative Strength Index):** Hovering around 55, neither overbought nor oversold.
*Chart Patterns:*
A possible ascending triangle appears on the 4-hour chart, with higher lows forming since mid-July, suggesting underlying bullish pressure. A breakout above 1.0940 would target 1.1000 and potentially 1.1050 if momentum persists.
*Weekly Outlook:*
– A sustained push above 1.0940 would encourage bullish follow-through, especially if US data disappoints.
– Conversely, a break below 1.0850 could open the downside, targeting prior demand near 1.0780.
*Trade Ideas:*
– Bullish: Seek long entries on a confirmed 4-hour close above 1.0940, targeting 1.1000, with stops below 1.0900.
– Bearish: Short positions could be considered if price falls below 1.0850, targeting 1.0780, with stops above 1.0885.
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**2. GBP/USD**
*Summary:*
The British pound has exhibited wide-ranging volatility, influenced by ongoing Bank of England signals and mixed UK macroeconomic data. Cable was rejected twice at 1.2970 in July, while 1.2700 has provided robust support.
*Technical Highlights:*
– **Support:** Immediate support is found at 1.2765, then 1.2700.
– **Resistance:** 1.2900 presents a nearby ceiling, ahead of the key 1.2970.
– **200-Day EMA:** At 1.2723, reinforcing the significance of the 1.2700 zone.
– **MACD (Moving Average Convergence Divergence):** Recent bullish cross but momentum is fading.
*Chart Observations:*
– GBP/USD established a rising channel over the past month, but failed to hold above 1.2900.
– The inability to break past 1.2970 suggests a potential double top pattern, which would be confirmed by a drop below 1.2700.
*Weekly Prognosis:*
– The near-term trend remains cautiously bullish, but a daily close under 1.2765 may negate upward momentum.
– Watch for sharp moves around key UK data releases or changes in US interest rate expectations.
*Trade Opportunities:*
– Buy on dips into 1.2765 if supported by bullish reversal candlesticks, aiming for 1.2900.
– Sell if there is a close below 1.270
Read more on GBP/USD trading.