CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖
News hero gradient

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

By :   Michael Boutros , Sr. Technical Strategist
May 28, 2026 6:00 PM

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.

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.

--- Written by Michael Boutros, Senior Technical Strategist

Follow Michael on X @MBForex

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website 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.

Delayed London Stock Exchange (LSE) Data

The London Stock Exchange (LSE) market data displayed or referenced on this website is provided on a delayed basis and is not in real time. The delay period may vary but is typically at least 15 minutes. This data is intended for information purposes only and should not be relied upon for trading, investment, or other financial decisions. We do not guarantee the completeness, reliability, or suitability of the data for any particular purpose. Users should consult real-time data sources and obtain professional advice before making any financial decisions.

© City Index 2026