GBPUSD may find its footing as selling storm subsides

As of May 29, the daily GBPUSD chart reveals a market trapped in a flat grind after plunging from a local high of 1.36519. The pair is currently hovering near 1.34400, with candles showing a narrowing range and a clear absence of directional drive.

Technical indicators suggest that selling pressure is gradually loosening its grip; however, they are not yet flashing a full‑fledged buy signal. The Chaikin Oscillator has recently climbed out of negative territory into positive ground, signaling that capital inflows are recovering from the previous low. That said, the indicator remains close to the zero line—a sign that buying activity is stabilizing, though still lacks any real punch.

But this isn't the only game in town. Add Bill Williams' Awesome Oscillator (AO) to the mix, and the story stays the same. It continues to dwell below zero, formally preserving a bearish posture, yet the negative amplitude has shrunk considerably. In other words, downward momentum is fading, and the scales could be tipping. What's more, the current formation is starting to resemble a bullish "Two Peaks" setup, often a precursor to a move higher. And if you need further confirmation, the Commodity Channel Index (CCI) reinforces the neutral stance, having flattened out near the zero line, indicating that the sharp correction is over and the market is entering a stabilization phase. 

On the fundamental side, the stage is also being set for a modest pound recovery. The dollar is softening as safe‑haven demand wanes on reports of a possible extension of the US‑Iran ceasefire. Meanwhile, the British currency is getting a lift from surging corporate sentiment at home: the Lloyds Business Confidence Index jumped to +47, while the Business Expectations Index soared to +58. 

Thus, as long as geopolitical tensions stay on the back burner, the baseline outlook points to a moderate rebound for the pair. 

For those ready to make a move, pay attention to the trading plan down below:

Buy GBPUSD at the current price in the range of 1.3430–1.3445. Place Take profit at 1.3590. Set Stop loss at 1.3330.

This forecast holds true from May 29 till June 5, 2026.