GBP/USD. Pound/Dollar Forex forecast for today, June 1, 2021
On Monday, the British currency rose against the US Dollar to the level of 1.4200.
The quotes again approached the strong resistance zone of 1.4234, and in the near future we can count on an attempt to break this mark. Despite the strong US consumer inflation data, investors believe that the Fed will maintain its extremely loose monetary policy for an extended period. The FOMC downplays fears of rampant inflation and repeats that any jump in prices will be temporary. This position limits the demand for the dollar.
On the other hand, the British pound may continue to benefit from the optimistic forecasts of the recovery of the UK economy after the pandemic. And Bank of England spokesman Gertjan Vliege's tough remarks about the chances of an interest rate hike by the Central Bank next year should further strengthen the pound. Low liquidity on the back of the weekend in the UK and the US kept traders from aggressive actions. In the coming days, the activity on the foreign exchange market will increase and allow us to count on the growth of quotations in the direction of resistance.
GBP/USD Pound/Dollar Forex forecast for June 1, 2021
The forecast assumes an increase in the Pound/Dollar exchange rate to the levels of 1.4220 and 1.4240, after which we expect a pullback back to the support of 1.4200.