As of June 2, 2026, GBPUSD is attempting to recover from yesterday’s decline.
The pair remains in a consolidation phase, caught between lingering geopolitical risks and the upcoming publication of key US labor market data.
The Middle East crisis continues to drive dollar strength due to its safe-haven status. Persistent threats regarding the still-blocked Strait of Hormuz keep energy prices elevated and fuel inflationary pressure in both the UK and the US.
The Bank of England (BoE) has kept borrowing costs at 3.75%. British inflation has recently picked up steam, hitting 3.3% in May. As a result, the likelihood of a rate cut at the June 18 meeting has fallen to nearly zero. Moreover, market participants are now whispering about a possible hike to 4% by the end of the year if the Consumer Price Index (CPI) continues to run hot.
The UK’s GDP outlook for 2026 has just been revised downward to the 0.8%–1.0% range, weighed down by high gas costs and weak consumer spending—factors that could limit the pound’s upside in the long term.
Market sentiment remains cautious: few are willing to take a risk and buy the GBP before the US JOLTS report, which could shift the Federal Reserve’s (Fed) monetary trajectory. If the data comes in strong, the dollar will push the pair down toward 1.3400.
However, on the technical side, GBPUSD appears determined to test the 1.3575 resistance level.
The overall recommendation is to buy GBPUSD. Profits should be taken at 1.3575. Stop Loss could be set at 1.3405.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
