Forex Seasonality: GBP/USD Sinks in August
The August forex seasonality has been analyzed, and it reveals some concerning trends for several major currency pairs. Historically, GBP/USD has seen its worst monthly performance in August, with average returns of around -0.5% since 1971.
A bearish move in AUD/USD could create an 8-month head-and-shoulders topping pattern on the pair, with a neckline in the 0.6850 zone.
The key question for USD/JPY is how serious Japan and the US are about providing ongoing support to the yen, rather than long-term seasonal tendencies.