Market Analysis
XAUUSD midweek: gold breaks above 4160, where we are 2026-08-03
Gold is up roughly 89 dollars from Monday's open, having cleared 4172.77 intraday as Hormuz deal hopes ease inflation fears.
2 min readGBPUSD trades at 1.34554 as of Wednesday's close, up from Monday's open of 1.34908 only after a sharp reversal. The week's high sits at 1.35025, printed early Monday, and the low at 1.34168, hit later that same session. From Monday's open to now, cable is down about 35 pips, but from Monday's close of 1.34267 it has recovered close to 29 pips.
There has been no scheduled UK or US data driving this move. The standout headline was the PBOC fixing the yuan weaker than the Reuters estimate. A softer yuan fix tends to firm the dollar broadly, and that fed the pressure that dragged cable to its 1.34168 low on Monday before buyers stepped in through Tuesday and Wednesday.
The back half of the week carries no high-impact scheduled events in this bundle, so price action will hang on headlines rather than the calendar. Watch the PBOC fix each session. If the yuan is fixed weaker than estimate again, dollar strength can cap GBPUSD near this week's high. If the fix comes in stronger, that pressure eases and cable has more room to extend the recovery. A parallel dollar move would show up in EUR/USD too, so watch that pair for confirmation of a broad theme versus a sterling-specific one.
Sentiment is split almost dead even, with 50.1 percent long and 49.9 percent short as of Wednesday morning. That is as flat as positioning gets. There is no crowd conviction here midweek, which means the next clean break has no heavy book leaning against it.
Cable is pressing the 1.34594 area, this week's Wednesday high, with the round 1.3500 handle and Monday's 1.35025 peak just above. If price clears and holds above 1.34594, that 1.3500 zone is the next obvious test. If it fails there and slips back, Monday's 1.34168 low is the level that comes back into focus. You can track both edges of that range on our platform when you open an account.
Byline: LHFX Research
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