**Forex Pairs in Focus: 3rd to 8th August 2025**
*Analysis by Adam Lemon, as featured on DailyForex.com*
As the global economy navigates another turbulent quarter, forex traders are met with increased volatility and opportunities across major and minor currency pairs. The first week of August 2025 opens with a flurry of high-impact economic data, central bank policy deliberations, and geopolitical developments that create an especially dynamic backdrop for the forex markets. This deep-dive provides a comprehensive technical and fundamental outlook on the most important currency pairs likely to dictate the market’s course between August 3rd and August 8th, 2025.
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## 1. **EUR/USD**
### **Recent Price Action**
– The EUR/USD pair has oscillated within a broad but well-defined range over the past several sessions, largely contained between 1.0840 and 1.1050.
– Sizable volatility spikes followed the European Central Bank’s (ECB) July statement, but firm resistance near 1.1050 capped any bullish advances.
### **Fundamental Backdrop**
– ECB members continue to sound cautious, projecting a wait-and-see approach regarding further interest rate hikes.
– On the American side, recent data on non-farm payroll and manufacturing PMIs suggest moderate economic resilience but not enough to guarantee another rate hike in the near term.
### **Technical Outlook**
– Daily chart momentum indicators are flat, implying a market in search of clear direction.
– Price is lingering above the 100-day SMA, hinting at a slight bullish bias.
**Key support zones**
– 1.0840: Previous session low and historical pivot area
– 1.0780: 200-day moving average support
– **Key resistance zones**
– 1.1050: Recent swing high and psychological level
– 1.1120: Upper boundary of the April/May consolidation
### **Potential Trading Strategies**
– Range trading between 1.0840 and 1.1050 remains attractive until a clear breakout occurs.
– Momentum traders should monitor for strong hourly or four-hour closes above resistance or below support for possible trend continuation signals.
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## 2. **GBP/USD**
### **Recent Price Action**
– GBP/USD has endured a period of choppy trading, repeatedly testing but not conclusively breaking the 1.3000 psychological area.
– Recent upside attempts have faltered near 1.3050, while dips are finding buyers near 1.2850.
### **Fundamental Backdrop**
– The Bank of England’s (BoE) August policy meeting looms large on the calendar, with market participants divided over the prospect of another rate hike.
– Latest UK inflation readings have cooled modestly but remain above BoE’s medium-term targets.
### **Technical Outlook**
– The pair sits in a narrowing triangle, with price action compressing and hinting toward an imminent breakout.
– The RSI is neutral but trends toward bullish territory, suggesting underlying accumulation.
**Support levels**
– 1.2850: Corresponds with a key horizontal level tested several times since April
– 1.2750: The lower boundary of the multimonth uptrend
**Resistance levels**
– 1.3050: Last week’s high and strong supply zone
– 1.3150: Upper channel boundary from June peak
### **Potential Trading Strategies**
– Breakout traders may look for a daily close above 1.3050 for confirmation of bullish momentum.
– Mean reversion setups are possible within the bracketed range as the market awaits the BoE’s decision.
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## 3. **USD/JPY**
### **Recent Price Action**
– USD/JPY soared to nearly 148.00 in late July before retracing toward the 145.50 region.
– The pair remains highly sensitive to both US Treasury
Read more on GBP/USD trading.