The GBPJPY pair provided some weak sideways waves by its stability near 214.00, affected by the continuation of the main indicators contradiction beside forming extra support at 213.30 level, obstructing the chances of resuming the previously suggested corrective trend.

The sideways range trading might continue currently, however the stability below 214.50 barrier makes us wait for gathering negative momentum, to repeat the pressure on 213.30 support, to find an exit for targeting more corrective stations by reaching 212.70 and 212.20, while breaching the barrier and holding above it will cancel the negative overview, providing strong chance for forming bullish waves in the upcoming period trading.

The expected trading range for today is between 212.75 and 214.20

Trend forecast: Bearish

• The British pound fell to kick off the trading session on Thursday as interest rates in America climbed, but we’ve seen a reversal in the interest rate markets and that of course has helped the British pound against the US dollar.

• Ultimately the area below the 200-day EMA, I think, remains very well supported. At this point, if we break above the 50-day EMA, the market could go looking to the 1.3550 level.

• All things being equal, this is a market that I think remains very noisy and choppy, and I think it also continues to see a lot of erratic behavior on short-term charts.

Ultimately, I think this is a market that is interesting to watch because the United Kingdom is one of the few places where you get a positive swap trading against the US dollar. Now, having said that, it’s not a huge differential and I don’t think it’s enough to really move the market by itself, but it is a little bit of an outlier in that sense.

Signs of US Dollar Weakness

The US dollar with higher rates of course has been like a wrecking ball with many other currencies. This one might be different. If we do rally from here, and I suspect we probably will eventually, the British pound will probably be the first place you see US dollar weakness.

If we break down from here, the 1.33 level has offered support right along with the 1.3250 level. Ultimately, I like the British pound, but I also recognize there’s a lot of headline risk out there from the Middle East, and concerns about the energy markets and supply chain remain an issue.

Ready to trade our daily GBP/USD Forex forecast? Here’s some of the best forex broker UK reviews to check out.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire

The US dollar has fallen fairly significantly against the Swiss franc. But again, I think you’ve got a situation where traders are testing support at the 0.78 level to see if it holds. I think given enough time, we probably see the interest rate differential come back into play that does, of course, favor the United States dollar.

And if we get a little bit more risk appetite out there, I think that would make the difference. Ultimately, I am bullish on this pair. We are in a range, we’re getting close to the bottom of it, I’m looking for a bounce.

USD/JPY Technical Analysis

• We have bounced nicely since then as interest rates in America have fallen a bit. That, of course, gives a little bit of relief from US dollar strength.

• The market is currently hanging around the 200-day EMA and the 50-day EMA indicators.

As we are between them, I think this is a scenario that if we can break above the 1.17 level, it could open up a move to the 1.18 level. If we break down below the low of the trading session on Thursday, that opens up a trapdoor, if you will. I think we will go much lower. Generally speaking, I would expect that with something in the bond markets happening, yields rising in America.

Market Noise and Consolidation

The EUR/USD market continues to see a lot of volatile moves and, of course, it will come down to the latest rumor or tweet or headline coming out of the Middle East. I think you have a situation where traders continue to see a lot of noise, a lot of choppiness, and continue to focus mainly, I believe, on short-term charts.

We are in the middle of a larger consolidation area between the 1.1850 level on the top and the 1.14 level on the bottom. Being in the middle, I think opens up the reality that we’re basically at fair value. This ‘mean reversion’ could be something we see occur time and time again.

So, unless we see something change consistently on a bigger time frame and bigger outlook, I think we’re just stuck here. We’ll see. The 50-day EMA looks like it could offer a little bit of resistance.

Ready to trade our EUR/USD daily forecast? Here’s a list of some of the top forex brokers in Europe to check out.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire

The GBPJPY pair provided some weak sideways waves by its stability near 214.00, affected by the continuation of the main indicators contradiction beside forming extra support at 213.30 level, obstructing the chances of resuming the previously suggested corrective trend.

The sideways range trading might continue currently, however the stability below 214.50 barrier makes us wait for gathering negative momentum, to repeat the pressure on 213.30 support, to find an exit for targeting more corrective stations by reaching 212.70 and 212.20, while breaching the barrier and holding above it will cancel the negative overview, providing strong chance for forming bullish waves in the upcoming period trading.

The expected trading range for today is between 212.75 and 214.20

Trend forecast: Bearish

– Written by


Tim Boyer

STORY LINK GBP/USD Forecast: Softer US Growth Caps US Dollar Gains

The Pound US Dollar (GBP/USD) exchange rate traded in a tight range on Thursday after recovering from an earlier dip during the European session.

At the time of writing, GBP/USD was trading at around $1.3424, broadly unchanged from the day’s opening levels.

The US Dollar (USD) struggled to hold onto its earlier gains on Thursday following the release of weaker revised growth figures from the United States.

According to the latest figures from the Bureau of Economic Analysis, US GDP growth for the first quarter was revised down from 2% to 1.6%, with softer consumer spending and lower business investment weighing on the final estimate.

The downward revision largely erased the ‘Greenback’s’ earlier advance, which had been driven by a more cautious market mood and renewed demand for safe-haven assets.

Investor nerves were rattled by escalating tensions in the Middle East after fresh exchanges between the US and Iran, while comments from US President Donald Trump regarding Oman and negotiations over the Strait of Hormuz added to geopolitical uncertainty.

The Pound (GBP) traded without clear direction on Thursday after a new report highlighted mounting problems within the UK labour market.

The government-backed review, led by former Health Secretary Alan Milburn, warned that more than one million young people are currently not in employment, education or training, raising fears over the long-term economic impact.

The report added to existing concerns surrounding the UK economy, particularly as signs of a broader labour market slowdown continue to emerge alongside growing pressure on public finances.

Near-Term GBP/USD Forecast: Bailey Speech to Drive Sterling?

Looking ahead to Friday’s session, aside from developments in the Middle East, the main focus for the Pound to US Dollar (GBP/USD) exchange rate is likely to be comments from Bank of England (BoE) Governor Andrew Bailey.

With markets still divided over whether the BoE could raise interest rates in June, investors will be watching Bailey closely for any clues regarding the central bank’s next policy move. Any hawkish signals may help to support Sterling.

Meanwhile, movement in the US Dollar is expected to remain closely tied to wider market sentiment, potentially allowing the safe-haven currency to strengthen if geopolitical tensions continue to escalate.

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The Euro to Dollar (EUR/USd) exchange rate failed to sustain gains seen in early May and has dipped to test support below 1.16 amid a firm dollar in global terms.

Danske Bank has expected the dollar to remain firm in the short term, but has now changed its stance and the bank expects that the US currency will strengthen over the longer term.

Previously, the bank had expected EUR/USD to strengthen back above 1.20 on a 12-month view, but it has now changed its position sharply and is forecasting a retreat to 1.12 by the middle of 2027.

High energy prices will represent a clear short-term risk for the Euro and ECB rate hikes may only provide limited support.

Danske Bank considers that the dollar outlook has changed. It notes that the data has been resilient while there has been evidence of increased inflation pressure while AI-related investment is boosting growth. In this context, it considers that cyclical factors now support the dollar.

Although it expects that the Federal Reserve will decide against rate hikes, it expects a tightening bias on inflation grounds and rate cuts are likely to be off the agenda which will support the US currency.

Platinum price formed more of the bearish corrective trading, affected by providing negative momentum by the main indicators, reaching the initial target at $1865.00, which represents an extra support against the negative trading.

The suggested scenario depends on the strength of the current support, as holding above it will increase the chances of forming bullish waves, to attempt to reach $1960.00, to attack the moving average 55 at $2000.00, while the decline below the support and providing negative close will force it to suffer extra losses by reaching $1805.00 and $1775.00.

The expected trading range for today is between $1865.00 and $1950.00

Trend forecast: Bullish