**Comprehensive Forex Technical Analysis: Major Currency Pairs Update (August 8th, 2025)**
*Inspired by and expanded upon the original work by Nek Muhammad at FX Daily Report.*
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## Introduction
The foreign exchange (forex) market is defined by its volatility and liquidity, offering traders around the globe various opportunities. As we assess the current landscape of major currency pairs on August 8, 2025, it is crucial to analyze both technical and macroeconomic factors that could sway trends in the coming weeks. This comprehensive breakdown goes beyond the original FX Daily Report article by Nek Muhammad, supplementing it with additional insight and market context.
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## EUR/USD Analysis
### Overview
– The EUR/USD is regarded as the backbone of the forex market, accounting for significant trading volumes.
– Recent sessions reflect a tug-of-war between bullish recovery attempts and persistent bearish pressure.
### Key Technical Levels
– **Support:** 1.0920, 1.0850, and psychological level at 1.0800
– **Resistance:** 1.1040, 1.1150
– The pair has recently been fluctuating around the 1.0950 mark, testing the lower border of its moderate uptrend channel.
### Chart Patterns and Trends
– Price action presents a series of higher lows since mid-July, but momentum appears to be waning.
– The daily Relative Strength Index (RSI) hovers around neutral territory (50) but is beginning to tilt downward.
– Moving averages, particularly the 50-Day Simple Moving Average (SMA), are converging with price, indicating a potential decisive move.
### Future Outlook and Scenarios
– Sustained movement below 1.0920 could trigger a deeper retracement toward 1.0850.
– A close above 1.1040 could open the door to test 1.1150, driven by renewed euro sentiment.
– Focus remains on European Central Bank (ECB) policy signals and US inflation data as potential catalysts.
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## GBP/USD Analysis
### Overview
– The British pound has faced renewed volatility due to both domestic fiscal policy concerns and the influence of US economic data.
– Despite several recovery attempts, GBP/USD has been unable to make a decisive push above 1.3000.
### Key Technical Levels
– **Support:** 1.2770, 1.2650
– **Resistance:** 1.2950, 1.3100
### Technical Structure
– The pair is consolidating within a descending triangle, with lower highs signalling a cautious market.
– The daily MACD (Moving Average Convergence Divergence) is flatlining, suggesting indecision.
– Short-term ascending support from the July dip has not yet been breached.
### Critical Events
– Bank of England (BoE) interest rate decisions and commentary regarding inflation will likely shape GBP/USD direction.
– Chancellor budget remarks and the ongoing debate around fiscal stability could
Read more on AUD/USD trading.