Weekly Technical Outlook: GPB/USD ; Market Forecasts for May 28th – June 2nd

• Resistance level 1.2896
• Pivot Level 1.2829
• Support Level 1.2600, 1.2511 and 1.2422

Technical Analysis

Daily bias in GBP/USD remains bearish with 1.2896 resistances intact and deeper decline is still expected for the pair as long as resistances hold the area.

The price action stays below resistances so far at this point and such decline is viewed as a correction. Thus, we’d expect the resistance to hold the area.

The pair indicates a bearish reversal and continues with the downside bias. The price action signals a two bar reversal indicating a bearish movement.

With rejection at resistance area closed below the trend line and stochastic oscillator currently at 51.0 levels, the pair closes below the rejection of trend line and there is a clear indication of trend reversal shifting the momentum.

Current developments suggest that the medium term downside is expected to be further low and the focus shall be at 1.2600 levels. Any break here should make lower lows with 1.2511 levels.

Economic

• Gfk Consumer Confidence, Consumer Credit, Mortgage Approvals
• Markit Manufacturing PMI, PMI Construction
• FOMC Member Williams speech, Consumer Confidence, FOMC Member Kaplan Speech
• FOMC Member Williams speech, ADP Employment Change, ISM Manufacturing PMI
• Unemployment Rate, Nonfarm Payrolls, Trade Balance

Area of Interest

• Strong resistance at 1.2896 area and closed below resistance levels.
• Bearish reversal strongly closing below the rejection of trend line with two bar signal.
• Price action closed below trend line and oscillator below 51.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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