GBP/USD Price Forecast: Reaches Fresh Three-Month Highs Above 1.3550
June 1, 2026 | FXStreet – By Akhtar Faruqui
The GBP/USD currency pair extended its bullish momentum on Tuesday, reaching a fresh three-month high of 1.3562 during early Asian trading hours. This marks the second consecutive session of gains for the British Pound against the US Dollar as market sentiment remains positive.
Technical Overview
According to technical analysis of the daily chart, the pair retains a persistent bullish bias. The 14-day Relative Strength Index (RSI) stands at 69.29, inching close to the overbought threshold. This suggests that while the positive momentum remains strong, the pair may undergo some short-term consolidation before the current uptrend resumes.
The GBP/USD continues to hold above key moving averages, including the rising nine-day Exponential Moving Average (EMA) at 1.3496 and the 50-day EMA at 1.3375. The short-term nine-day EMA is positioned above the medium-term 50-day EMA, reinforcing upside pressure.
Potential Price Targets
Further gains could push the pair toward the six-month high of 1.3726. Beyond that, the level of 1.3788, representing the highest peak since October 2021, lies ahead as a possible target for the bulls. However, traders should be mindful that stretched RSI conditions could temporarily cap the pair’s next leg higher.
Support Levels to Watch
In the event of a pullback, immediate support is expected at the nine-day EMA of 1.3496. A breach below this level could open the door to the 50-day EMA at 1.3375. A more significant breakdown under the medium-term average might apply downward pressure toward a critical low near 1.3010, which marks an eight-month trough.
Currency Performance Snapshot
Amid broader currency movements, the British Pound stood out as the strongest performer against the Japanese Yen today. The heat map of major currencies indicates modest percentage changes, with the GBP showing resilience particularly versus the JPY.
| Currency Pair | % Change Today |
|---|---|
| GBP/JPY | +0.11% |
| GBP/USD | +0.09% |
| GBP/EUR | 0.00% |
(Note: Percentage changes reflect pair movements where the British Pound is the base currency.)
Market Sentiment and Outlook
The current bullish trend in GBP/USD is supported by robust technical factors and positive market sentiment. Nonetheless, the approaching overbought territory calls for cautious optimism as short-term consolidation or minor corrections are plausible.
Investors will also be keeping an eye on upcoming UK economic data and US employment reports, which could influence the pair’s trajectory in the near term. Meanwhile, geopolitical events and central bank policies remain key drivers shaping FX market dynamics.
About the Author:
Akhtar Faruqui is a Forex Analyst based in New Delhi, India, specializing in market trends and in-depth financial analysis. He contributes regularly to FXStreet, providing timely and insightful forex news.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Market conditions can change rapidly, and investors should perform their own research before making trading decisions.