FPG GBPUSD Market Report August 25, 2025

The GBPUSD daily chart shows the pair struggling to regain bullish momentum after the recent decline from the 1.37863 resistance area. Price is currently consolidating around the 1.3500 region, with the Ichimoku cloud acting as overhead resistance and the Kijun-sen (blue line) providing dynamic support near 1.3450. The presence of multiple wicks around this level signals indecision, suggesting the market is awaiting a catalyst for a clearer directional move.

From a broader perspective, the pair remains capped below the 1.35894 resistance, which aligns with both the flat Kijun-sen and a previous supply zone, highlighting the importance of this level for further upside confirmation. A sustained break above this resistance would open the way toward retesting the 1.37863 high, while failure to do so may attract renewed selling pressure back into the 1.3400–1.3350 area, and potentially toward the 1.31427 support if bearish momentum accelerates.

The stochastic oscillator, currently rebounding from oversold territory, indicates a possible short-term recovery attempt. However, with the price still trading below the Ichimoku cloud and showing limited follow-through on bullish candles, upside momentum may remain corrective rather than a full reversal unless buyers can reclaim and sustain levels above 1.35894. Traders should monitor price action near the 1.3500 handle closely, as a break in either direction could define the next medium-term trend.

Market Observation & Strategy Advice:

1. Current Position: GBPUSD is trading around the 1.3496 area, showing consolidation after its recent pullback. The pair remains capped below the Ichimoku cloud, suggesting bearish pressure still dominates, although near-term buying interest is emerging from oversold levels.

2. Resistance: The immediate resistance is seen at 1.3589, which aligns with a key horizontal level and the cloud boundary, while the major resistance stands at 1.3786, marking the recent swing high and supply zone.

3. Support: The immediate support is located around 1.3425 to 1.3450, near the Kijun-sen zone and recent lows, while the major support rests at 1.3142, representing a critical swing low and long-term horizontal level.

4. Indicators: The Ichimoku Cloud shows that price is still trading below the cloud, indicating an overall bearish bias. The Stochastic Oscillator is turning up from oversold territory, signaling a potential short-term bullish correction. Meanwhile, Bollinger Bands indicate that price is consolidating near the mid-to-lower band, suggesting volatility compression ahead of a possible breakout.

5. Trading Strategy Suggestions:

• Short Setup: Entries can be considered near 1.3589 resistance if price fails to break higher and shows rejection. The target is 1.3425, extendable to 1.3142 if momentum strengthens, with a stop-loss above 1.3620.
• Long Setup: Entries should only be taken on a confirmed breakout above 1.3589 with a daily close inside the Ichimoku cloud. The target is 1.3700 to 1.3786, with a stop-loss below 1.3500 or near the Kijun-sen.
• Risk management: Calls for limiting exposure to 1–2% per trade, favoring setups aligned with the broader bearish trend, and applying trailing stops once price moves halfway toward the target to protect gains.

Market Performance: 

Forex Last Price % Change

EUR/USD 1.16990  −0.16%

USD/JPY  147.378  +0.34%

Today’s Key Economic Calendar:

DE: Ifo Business Climate

US: Chicago Fed National Activity Index

US: New Home Sales MoM

US: Dallas Fed Manufacturing Index

Risk Disclaimer This report is for informational purposes only and does not constitute financial advice. Investments involve risks, and past performance does not guarantee future results. Consult your financial advisor for personalized investment strategies.

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