Weekly Technical Outlook: GBP/USD;Market Forecasts for May 30th – June 3rd

• Resistance level 1.46745
• Pivot Level 1.46629
• Support Level 1.45382, 1.44368, and 1.43433

Technical Analysis

Daily bias in GBP/USD remains bearish with 1.46745 resistances intact. A deeper decline is still expected for the pair as long as resistance holds the area. The price action stays below resistances at this point and such a decline is viewed as a correction. Thus, we’d expect resistance to hold the area and pair remains bearish with break of 1.46629 indicating a near term bearish reversal. Outlook turns to continue with the downside bias. The price action signals a two bar reversal bearish movement with rejection at resistance area closing below the trend line. The stochastic oscillator, on the other hand is currently at 68.0 levels and the pair closed below the rejection of trend line. There is clear indication of trend reversal shifting the momentum. Current development suggests that the medium term downside is expected for a further low and the focus shall be at 1.45382. Breaks here should make lower lows with 1.44368 levels.

Economic

• Markit Manufacturing PMI, Mortgage Approvals, Consumer Credit
• PMI Construction, Markit Services PMI
• Consumer Confidence, ADP Employment Change, ISM Manufacturing PMI
• Initial Jobless Claims, FOMC Member Powell Speech, Unemployment Rate, Nonfarm Payrolls

Area of Interest

• Strong resistance at 1.46745 area and closed below resistance levels.
• Bearish reversal strongly closing below the rejection of trend line with two bar reversal.
• Price action closed below trend line and oscillator below 84.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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