GBP/USD Clears June Opening Range

GBP/USD clears the opening range for June as it initiates a series of higher highs and lows, and the exchange rate may continue to retrace the decline from the May high (1.2680) as it trades back above the 50-Day SMA (1.2465).

GBP/USD Rate Outlook

GBP/USD registers a fresh monthly high (1.2558) on the back of US Dollar weakness, with a move above 1.2650 (38.2% Fibonacci extension) bringing the May high (1.2680) on the radar.

Next area of interest comes in around 1.2760 (61.8% Fibonacci retracement), and the exchange rate may track the positive slope in the moving average to mirror the price action from earlier this year.

However, failure to test the May high (1.2680) may keep GBP/USD within a defined range, with a move below the moving average bringing the 1.2280 (23.6% Fibonacci extension) to 1.2340 (23.6% Fibonacci extension) area back on the radar.

--- Written by David Song, Strategist