FX.co ★ Forecast for GBP/USD on May 31, 2019

GBP/USD

The pound is slowly declining to the nearest target of 1.2530 – the minimum on December 14. After overcoming the first goal, the second one opens – 1.2388, which is the support of the embedded line of the price channel of the weekly timeframe.

Significant events for the British pound did not happen yesterday. The revision of US GDP for the 1st quarter in the 2nd estimate for a decrease from 3.2% to 3.1% was within expectations, the US trade balance for April was slightly worse than the forecast: -72.1 billion dollars against -72.0 billion Today, investors are waiting for data on income and expenditure of consumers in April. The forecast for income is 0.3%, for expenses is 0.2%.

Data on lending in the UK will be released in the afternoon. The net volume of new loans issued to individuals in the UK in April is expected to be 4.6 billion pounds against 4.7 billion of March, but the number of issued permits for mortgage lending may increase from 62 thousand to 64 thousand. Doubtful as permits (some customers will later abandon the loan) leaves US data on consumer spending priority for market participants.

So, the nearest target is 1.2530 and the second target is 1.2388.