British Pound Technical Forecast: GBP/USD Battle Lines Drawn for June

British Pound Technical Forecast: GBP/USD Weekly Trade Levels

British Pound rally falters ahead of multi-year trend resistance
GBP/USD holding support for a third-week – focus is on breakout of this week’s range
Sterling resistance 1.2537, 1.2633/79, 1.2757/73– support 1.2397, 1.2084-1.2138, ~1.2010

The British Pound is attempting to snap a three-week losing streak with GBP/USD up nearly 0.5% ahead of the close on Friday. While a rebound off support may have further upside potential near-term, the broader threat remains for a larger correction after turning from multi-year trend resistance (blue). These are the updated targets and invalidation levels that matter on the GBP/USD weekly technical chart.

Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Sterling setup and more. Join live on Monday’s at 8:30am EST.

British Pound Price Chart – GBP/USD Weekly

Chart Prepared by Michael Boutros, Sr. Technical Strategist; GBP/USD on TradingView

Technical Outlook: In last month’s, British Pound Weekly Forecast we noted that a breakout of the yearly opening-range highs in GBP/USD shifted the medium-term focus higher with the advance within striking distance of, “a key technical confluence at multi-year trend resistance around 1.2757/73- a region defined by the 61.18% retracement of the 2021 decline and the February 2019 low (an area of interest for possible exhaustion / price inflection IF reached).”

Sterling registered an intraweek high at 1.2679 the following week before reversing sharply lower with the decline sitting at support around the January high-week close at 1.2397 for the past three-weeks- price has been unable to mark a weekly close below. . .

Initial weekly resistance is now eyed at the 2023 high-close / high at 1.2633/79 with a breach / weekly close above the 1.2757/73 ultimately needed to mark resumption of the 2022 uptrend towards 1.31.

A break / close below the October trendline (red) would suggest a deeper correction may be underway with such a scenario exposing key support at 1.2084-12138- a region define by the objective yearly open and the 61.8% Fibonacci retracement of the yearly range. Look for a larger reaction there IF reached.

Bottom line: Sterling faltered just ahead of multi-year downtrend resistance with the pullback now reacting to initial support- the rebound has already completed 61.8% retracement of the pullback (not shown) and the immediate focus is on a breakout of this week’s range for guidance. From a trading standpoint, the threat remains for a deeper setback while below 1.2633/79. I’ll publish an updated British Pound short-term outlook once we get further clarity on the near-term GBP/USD technical trade levels.

Key Economic Data Releases

Economic Calendar - latest economic developments and upcoming event risk.

Active Weekly Technical Charts

--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com

Follow Michael on Twitter @MBForex

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

Contracts for Difference (CFDs) are not available to US residents.

FOREX.com is a trading name of GAIN Capital - FOREX.com Canada Limited, 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA is a member of the Canadian Investment Regulatory Organization and Member of the Canadian Investor Protection Fund. GAIN Capital – FOREX.com Canada Limited is a wholly-owned subsidiary of Stonex Group Inc.

Complaints are taken very seriously at FOREX.com. You can view our complaints procedure here.

Know your advisor