GBP/USD: forecast for June 15-21
British pound jumped to the upside on the past week, forming a “bullish engulfing” candle on the weekly chart. The pair faced resistance at 1.5550 – this is where 38,2% From the 2014 decline lies.
Break above this level could open the way towards the 1.5900 area. However, the market lacks momentum for such a strong move these days. Next week we expect the USD buying to resume.
Meanwhile, Great Britain is scheduled to release CPI, labor market figures and retail sales data on the coming week. Pay attention to the average earnings index – wage growth is expected to accelerate to 2.4%, giving a good signal to the Bank of England.
Chart. Daily GBP/USD