On Tuesday (August 4), during the European session, the pound/dollar exchange rate rose slightly to 1.3452, an increase of 0.16%. The pound rebounded after a sharp decline, influenced by both the latest developments in the Middle East and the interest rate decisions made by the Federal Reserve and the Bank of England last week. Divergent PMI Data from the UK and US The latest UK and US manufacturing PMI data show a divergence between the two economies, causing the pound to weaken against the dollar. S&P Global data shows that the UK's July manufacturing PMI fell to 51.9 from 52 in June, below the market expectation of 52.0. In contrast, the US manufacturing PMI climbed to 53.9, higher than the expected 53.8. Another report from the Institute for Supply Management (ISM) showed that the index rose sharply from 53.3 in June to 55.6 in July. These data indicate a positive trend in the US manufacturing sector. Several days before the report's release, the Federal Reserve finalized its interest rate decision, maintaining the rate at 3.50%-3.75%. The Bank of England also maintained its interest rate at 3.75%. The pound's exchange rate against the dollar was also affected by the ongoing escalation of tensions in the Middle East, with the US and Iran currently in a standoff pause. Last weekend, the Trump administration suspended its planned decapitation strike against Iran. As a result, international oil prices fell slightly, but market concerns about the risk of war have not subsided. Iran denied engaging in any negotiations with the United States, stating that it had only communicated with Oman regarding the resumption of navigation in the Strait of Hormuz. There are no major data releases for the pound against the dollar today; traders will focus on the upcoming US non-farm payroll (NFP) report. Technical Analysis The weekly chart shows that the pound/dollar exchange rate has remained within a narrow range in recent months. On Tuesday, it traded at 1.3432, slightly above the 50-week exponential moving average (EMA). (GBP/USD Daily Chart Source: EasyForex) This currency pair is slowly forming a symmetrical triangle pattern, with the upper and lower sides of the triangle about to converge. The Average Directional Movement Index (ADX) continues its downward trend, reaching its lowest level since January of this year. Based on this, the exchange rate is likely to continue its range-bound trading pattern in the coming days, with key price levels to watch being 1.3300 and 1.3600. Bearish Strategy Short GBP/USD, with a take-profit target at 1.3300. Stop-loss at 1.3600. Holding period: 1-2 trading days. Bullish Strategy Long GBP/USD, with a take-profit target at 1.3600. Stop-loss at 1.3300.