The GBP/USD currency pair continues to move higher and form a downward “Wolfe Wave” pattern. At the time of this forecast’s publication, the GBP/USD exchange rate on Forex is 1.3645. Moving averages indicate a short-term bullish trend. Prices have broken above the signal lines, indicating upward pressure from buyers of the currency pair and potential further growth. Currently, we expect an attempt to further strengthen the British Pound against the US Dollar and a test of the resistance area near 1.3685. From there, we expect another downward rebound and a continued decline in the British Pound against the US Dollar. The target for the pair’s decline, as per the Forex forecast, is 1.3355.
GBPUSD Forecast and Analysis for 26 August 2026
An additional signal supporting a decline in the currency pair will be a test of the trend line on the relative strength indicator (RSI). A second signal supporting a decline will be a rebound from the upper boundary of the bearish Wolfe Wave pattern. A strong rally and a breakout of the resistance area with a price consolidation above 1.3775 would cancel out the downward trend in the GBP/USD pair. This would indicate a breakout of the pattern’s upper boundary and a continued rise in the GBP/USD exchange rate to 1.3935. Confirmation of the pair’s decline should be expected with a breakout of the lower boundary of the bullish channel and a price close below 1.3505.
GBPUSD Forecast and Analysis for 26 August 2026 suggests an attempt to develop a bullish correction and a test of the resistance area near 1.3685. Then, a continued decline in quotes with a target near 1.3355. An additional signal supporting a decline in the British Pound will be a test of the resistance line on the relative strength indicator (RSI). A strong rise in the British Pound against the US Dollar and a breakout of 1.3775 would cancel out the downside scenario. This would indicate a continued rally in the Forex pair, with a potential target above 1.3935.
