The GBP/USD currency pair has risen this week, approaching the 50% retracement level at 1.3463. The latest high is 1.3458, while the lows earlier this week were recorded at 1.32594. This week’s movements were impacted by the Bank of England’s decision to cut rates by 25 basis points, which had a narrow 5-4 vote. Following this rate cut, the pair climbed, surpassing the 100-day moving average. Trading is now slightly below the high at 1.3446.

Support Levels for GBP/USD

Support for a pullback may be found at the 38.2% retracement level, which was crossed earlier this week at 1.3386, and at the 100-day moving average, currently at 1.3359. If the price breaks above the 50% retracement level, traders might set their sights on the 61.8% level at 1.3540 and possibly the July 23 high at 1.3588. The pair has already moved past the 100 and 200-hour moving averages, and it has surpassed the 38.2% retracement. While challenges remain at the 50% retracement level, previous gains have created bullish momentum for GBP/USD. Traders should stay alert and ready for market changes early next week.

Current Market Overview

As of August 8, 2025, the GBP/USD is at a crucial point. The pair is hovering just below the 1.3463 resistance level, which marks a key 50% retracement. In the upcoming week, traders will be watching to see if this ceiling holds or breaks. Recently, the pound has gained strength, supported by the Bank of England’s decisions earlier in the month. The BoE’s surprising 5-4 vote for a rate cut indicates a cautious stance on further easing. This sentiment aligns with the latest UK inflation data for July 2025, which showed a persistent 2.4%, putting pressure on the central bank. On the other hand, the US dollar has weakened a bit, contributing to the rise in this currency pair. The latest US jobs report for July 2025 indicated that Non-Farm Payrolls increased by only 170,000, falling short of expectations. This reinforces the belief that the Federal Reserve will likely keep rates steady through the fall. For traders expecting further gains, a clear break above 1.3463 could signal a good time to consider buying call options. A sustained move upwards would place the next targets at 1.3540 and then 1.3588. Bullish momentum has been gaining since the price held above the 100-day moving average. However, if the 1.3463 level acts as strong resistance, we may see a pullback. Traders looking to hedge or bet on a downturn might think about put options if the price gets rejected and moves back toward support. Key levels on the downside to monitor are around 1.3386 and the 100-day moving average just below it at 1.3359. It’s important to remember that the pound can move sharply, as demonstrated during the significant market shifts in 2022. While the current rally looks promising for bulls, stalling at this 50% Fibonacci level calls for caution. Stay alert and prepare for either a breakout or a reversal early next week. Create your live VT Markets account and start trading now.

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