The GBP/USD currency pair is ending the trading week in a downward trend and forming a Head and Shoulders reversal pattern. At the time of publication of the GBP/USD forecast for the week, the British Pound to US Dollar exchange rate is 1.3331.
Political events in the UK have added to the uncertainty for the British currency. Greater Manchester Mayor Andy Burnham announced his intention to run for the country’s leadership, drawing investors’ attention to domestic political risks. Meanwhile, current Prime Minister Keir Starmer confirmed his intention to remain in office. Potential intensification of political competition could temporarily increase currency volatility. On the monetary policy front, the pound is supported by expectations of further rate hikes by the Bank of England. Market participants are expecting nearly two rate hikes by the end of 2026, with the first potentially coming as early as September.
Moving averages indicate a bullish trend. Prices have broken below the signal lines, indicating selling pressure and a potential continuation of the decline in the British Pound against the US Dollar from current levels. At this point, we should expect an attempt at a bullish correction and a test of the resistance area near 1.3435. Subsequently, a downward rebound and a continued decline in the GBP/USD exchange rate to below 1.2665 are expected.
GBP/USD Weekly Forecast June 8 – 12, 2026
An additional signal for the British Pound’s growth will be a test of the resistance line on the relative strength indicator (RSI). A second signal will be a rebound from the upper boundary of the Head and Shoulders reversal pattern. A strong rally and a breakout of 1.3705 will cancel out the GBP/USD decline this week, June 8-12, 2026. This will indicate a breakout of the resistance area and continued growth above 1.4085. A decline in the GBP/USD pair will be confirmed by a breakout of the support area and a price close below 1.3135, which will signal a breakout of the lower boundary of the Head and Shoulders reversal pattern and the beginning of the pattern’s implementation with targets below.
GBP/USD Weekly Forecast June 8 – 12, 2026 suggests an attempt at a bullish correction and a test of resistance near the 1.3435 area. From here, we should expect the currency pair to continue falling, with a target below the 1.2665 area. A test of the trend line on the relative strength indicator (RSI) would be an additional signal of decline. A strong rally and a breakout of the 1.3705 level would cancel out the downward trend for the GBP/USD pair. In this case, we should expect continued growth with a potential target above 1.4085.
