The Pound Dollar GBP/USD currency pair continues to move within the framework of the correction development and the formation of the “Head and Shoulders” model. At the time of publication of the forecast, the Pound to US Dollar exchange rate on Forex is 1.3501. Moving averages indicate the presence of a short-term bullish trend. Prices have broken through the area between the signal lines downwards, which indicates pressure from sellers of the currency pair and potential continuation of the growth of the instrument. At the moment, we should expect an attempt to develop the fall of the British Pound against the US Dollar and a test of the support area near the level of 1.3475. From where we should again expect a rebound in the pair’s quotes upwards and continued growth of the British Pound against the US Dollar currency pair. The target for the pair’s rise, within the framework of the Forex forecast, is the area at the level of 1.3775.
GBP/USD Forecast and Analysis for August 26, 2025
An additional signal in favor of the growth of the currency pair will be a test of the trend line on the relative strength indicator (RSI). The second signal in favor of the rise will be a rebound from the lower border of the reversal pattern “Head and Shoulders”. The option with the growth of the Pound Dollar currency pair will be cancelled by a fall and a breakout of the support area with the price fixing below the level of 1.3325. This will indicate a breakout of the support level and a continuation of the fall of the Pound Dollar pair to the area at the level of 1.3105. Confirmation of the pair’s growth should be expected with a breakout of the resistance area and a price close above the level of 1.3655, which will indicate a breakout of the upper border of the “Head and Shoulders” reversal pattern.
GBP/USD Forecast and Analysis for August 26, 2025 suggests an attempt to develop growth and test the support area near the level of 1.3475. Then, continued growth of quotes with a target near the level of 1.3775. An additional signal in favor of the rise of the British Pound will be a test of the support line on the relative strength indicator (RSI). The growth scenario will be cancelled if the British Pound falls against the US Dollar and breaks through the 1.3325 area. This will indicate a further decline on the Forex pair with a potential target below the 1.3105 level.
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