GBP/USD: forecast for June 1-7
The cable had another bearish week, slipping below the 1.5300 mark. As can be seen from the monthly chart, the pair failed to break above the monthly Ichimoku cloud and is currently forming a long-legged bearish candle.
Buyers lost control over the market. On the daily chart, we see that the bullish trend support was crudely broken to the downside. Strong selling pressure persists and will likely extend into the new week. Our next bearish target is 1.5100. Break below could open the way to the April lows, but the 1.4500 area is expected to cap in the medium term. Resistance lies at 1.5550.
As for the economic calendar, watch the May PMI’s at the beginning of the new week. Manufacturing and construction indices are expected to recover a from the April dip, but they remain low relatively to the early 2014. On Thursday, the Bank of England holds its policy meeting.