**Comprehensive Forex Technical Analysis for Major Pairs – August 4, 2025**
*Adapted from the original article by Azeez Mustapha, FXDailyReport.com, with additional insights for a more in-depth perspective.*
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**Market Overview and Technical Outlook**
The forex market continues to be shaped by a diverse range of economic data outcomes and shifting central bank policy expectations. Major currency pairs are closely tracking global macroeconomic factors, from US labor market statistics to ongoing uncertainty surrounding inflation trends. Technical analysis supports traders in identifying key levels and potential turning points, offering both short- and long-term perspectives. As we begin August 2025, let’s take a closer look at the technical scenarios shaping the most actively traded currency pairs.
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**EUR/USD Technical Analysis**
– **Recent Price Action**
– The EUR/USD pair remains under mild bearish pressure amid subdued eurozone economic growth and persistent US dollar demand.
– The pair was recently capped below the 1.0975 resistance level, unable to sustain upward momentum following disappointing European manufacturing PMI releases.
– **Key Support and Resistance Levels**
– Immediate resistance: 1.0975
– Secondary resistance: 1.1050
– Immediate support: 1.0850
– Key support zone: 1.0780
– **Technical Indicators**
– The pair trades below its 50-day and 100-day simple moving averages, reinforcing the bearish bias. The daily Relative Strength Index (RSI) is hovering around 43, indicating potential for further downside before oversold territory is reached.
– **Short-term Outlook**
– A strong close below 1.0850 may prompt a swift decline to the 1.0780 region. Should the pair rebound and break above 1.0975, upside targets could extend to 1.1050.
– **Additional Commentary**
– Investors are watching for new eurozone inflation data as a catalyst, while any dovish language from Federal Reserve officials could spark a corrective rally.
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**GBP/USD Technical Analysis**
– **Recent Performance**
– GBP/USD has traded within a tightening range, with upside attempts stalling near 1.2860 and buyers repeatedly defending the 1.2680 support zone.
– The British pound displays cautious momentum, with the Bank of England’s outlook less hawkish amid softer UK consumer data.
– **Key Price Levels**
– Immediate resistance: 1.2860
– Next resistance: 1.2945
– Immediate support: 1.2680
– Deeper support: 1.2620
– **Technical Indicators**
– Moving averages are converging, reflecting indecision. The RSI sits near the 50 mark, suggesting a noncommittal momentum picture.
– **Outlook and Scenarios**
– Sustained movement above 1.2860 could encourage a rally toward 1.2945,
Read more on AUD/USD trading.