GBP/USD, USD/CHF, and USD/JPY – Short-Term Forecast for 19/08/2026

GBP/USD

The British pound is one I’m watching today as we continue to consolidate overall, but the early part of the session has been somewhat bullish. The question is, will we get into the overbought RSI levels right around this resistance barrier?

Approaching an Area of Concern

This isn’t me looking for a massive turnaround; this is me looking to maybe short for a couple of hours. The interest rates in America remain elevated, but they are higher in the United Kingdom, and that is a little bit of an issue with shorting here. But when you look at the longer-term setup, you can see we are approaching an area of concern. So, I would rate this along the lines of maybe a middle-of-the-road type of setup, short-term only.

GBP/USD chart shows price pressing resistance as RSI approaches overbought territory. Source: TradingView.

USD/CHF

The US dollar against the Swiss franc is a pair that I’ve bought on the dip multiple times over the last several months. You can see why when you zoom out on the chart. We’re sitting right around the 0.81 level. This is an area that’s been consistently fair value. I’m watching this because if we start to bounce from here, that’s another clue that maybe the dollar continues to strengthen against the Swiss franc.

Looking for a Nice Bounce

I do not short this pair mainly because if I end up being in it at the end of the day, and I will be because I have a long-term position, I do not want to pay the swap. There’s no point in it. So, I’m looking to see if we get a nice bounce here to buy the dollar.

USD/CHF chart shows the pair testing the 0.81 area as traders watch for a bounce. Source: TradingView.

USD/JPY

The US dollar against the Japanese yen has been a bit negative for the session, but when you zoom out, you can see it’s still very much overall in recovery against the Japanese yen since that intervention. I think we’re probably stuck in a consolidation area for a while; that makes sense. A lot of traders may be nervous about the Bank of Japan.

A Longer-Term Fundamental Conviction Trade

For me, if it falls, I just buy more. It’s a longer-term fundamental conviction type of trade until something changes, and that something would take a lot. Ultimately, the interest rate differential is very wide, and you have a situation where the Japanese have their back against the wall.

So, something’s going to have to give here. We got a little bit sneak preview of that over the last several months. I’ve been long of this pair multiple times. A bounce here has me adding a small position onto an existing core position.

USD/JPY chart shows consolidation within a broader recovery after the recent intervention. Source: TradingView.