The GBPUSD has broken below multiple levels of support and it’s trading down more than 1000 pips counting from April high. However, even though this is a strong bearish trend on the daily chart the stochastic indicator has posted extreme oversold readings suggests that sooner rather than later a bounce can be in the cards. The next logical and big support level only comes in at 1.3100 followed by the big psychological number 1.3000. On the upside the, the first level of resistance comes at 1.3390 but more importantly the big round number 1.3500 remains the critical level that the bears need to defend. A break and a daily close above 1.3500 can put in motion a larger correction or at least more ranging activity to be expected. The fundamental catalyst that caused the British Pound to lose more than 4% in value in the course of a month is the soft inflation readings. The UK inflation slowed down to 2.1%, which hints that the BOE might not be that eager to deliver another interest rate hike. The market is also pessimistic about May’s government to successfully implement a soft BREXIT, which is negative for the British Pound. Previous GBPUSD Monthly and Weekly Forex Forecast

GBPUSD Monthly Forex Forecast for June 2018