British Pound Forecast: GBP/USD Recovery Faces First Major Test

British Pound Technical Forecast: GBP/USD Weekly Trade Levels

GBP/USD has rebounded after a sharp selloff from the monthly highs.
The recovery is now approaching a major resistance zone near the yearly open- inflection risk rises.
A sustained move higher would support resumption of the broader uptrend while failure would keep focus on downside risks within the broader correction.
Resistance 1.3474, 1.3522 (key), 1.3648/85- Support ~1.33, 1.3266 (key), 1.3194

GBP/USD is attempting to recover after a sharp pullback from the monthly highs, with price now approaching the first major resistance zone since the decline began. The rebound has stabilized near-term momentum, but the broader outlook remains vulnerable while the pair trades below key resistance. The focus now shifts to whether buyers can sustain the recovery or if the rally stalls into another leg lower within the broader correction. Battle lines drawn on the GBP/USD weekly technical chart heading into June.

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 four-week rally had taken GBP/USD into, “technical resistance for a third consecutive week. The focus heading into May is on a breakout of this near-term range for guidance. From a trading standpoint, losses should be limited to the 52-week moving average IF price is heading for a breakout on this stretch..” The range broke lower two-weeks later with Sterling plunging 2.6% off the monthly high to register an intraweek low at 1.3302 before rebounding.

The focus is on this near-term recovery with initial resistance eyed at the yearly open at 1.3474 backed closely by the 61.8% retracement of the monthly decline at 1.3522. Note that the 25% parallel converges on this zone over the next few weeks and a breach / weekly close above would be needed to suggest a more significant low is in place and fuel a test towards key resistance at 1.3648/85- a region defined by the 2025 & 2026 high-week closes (HWC). Look for a larger reaction there IF reached.

Look for initial support near the 1.33-handle backed closely by the 78.6% retracement of the March advance at 1.3266 and 1.3194- a region defined by the 38.2% retracement of the 2025 advance and the yearly low-week close (LWC). Losses below this threshold would mark a break of the yearly opening range and threaten a steeper decline with the next technical consideration seen at the 2023 high-week close (HWC) and the November close low at 1.3092/96.

Bottom line: The Sterling recovery has stretched into pivotal resistance and marks the first test for the bulls. From a trading standpoint, the losses would need to be limited to 1.3266 IF price is heading higher on this stretch with a close above 1.3522 needed to fuel the next major leg of the advance.

Keep in mind we are heading into the close of the month with U.S. Non-Farm Payrolls on tap next week. Stay nimble into the June open and watch the weekly closes here for guidance. Review my latest British Pound Short-term Outlook for a closer look at the near-term GBP/USD technical trade levels.

GBP/USD Economic Data Releases

Economic Calendar - latest economic developments and upcoming event risk.

Active Weekly Technical Charts

--- Written by Michael Boutros, Senior Technical Strategist

Follow Michael on X @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. Products and services available depend on your location and the entity holding your account. 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