GBP/USD one week outlook: retracement gains momentum, with the Dow Jones Industrial Average reaching a new high of 1.3874

As of May 31, 2025, after a brief correction, the GBP/USD exchange rate remains bullish in market sentiment.Both technical and fundamental factors support the possibility of the pound rebounding in the coming week.

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📊 Technical analysis: Key support is stable, with a target of 1.3874

• support level：The current GBP/USD is supported around 1.3389, and if this level remains unbroken, the exchange rate is expected to continue to rise. fhzhs.com+3Mitrade+3Mitrade+3

• Resistance：The key resistance level above is at 1.3592. If it breaks through this level, it will confirm an upward trend and further target 1.3874. TradingView+4Mitrade+4Action Forex+4

• long-term trend ：The upward trend from the low point of 1.3051 in 2022 is still ongoing, with a mid-term target of 1.4004. Forex+3Action Forex+3Mitrade+3

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🌐 Fundamental factors: GBP supported by multiple favorable factors

• Strong UK economic data：The UK's GDP growth in the first quarter was strong, and the International Monetary Fund (IMF) raised its 2025 GDP growth forecast for the UK from 1.1% to 1.2%. Mitrade

• Bank of England policy expectations：Due to higher than expected inflation data, market expectations for the Bank of England to cut interest rates at its June policy meeting have weakened, supporting the strength of the pound. Mitrade+1Yingwei Caiqing Investing.com+1

• The impact of the US dollar trend：The core personal consumption expenditure (PCE) price index in the United States increased by 2.5% year-on-year in April, slightly lower than the previous value of 2.6%. The short-term pressure on the US dollar is positive for the pound. FXStreet+2Mitrade+2AAStocks+2

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📅 Focus on next week

• US Economic Data：Investors will pay attention to the May non farm payroll data and unemployment rate in the United States to evaluate the Federal Reserve's policy path.china business news+4Mitrade+4Binance+4

• UK Economic Data：The UK will release the May Manufacturing Purchasing Managers' Index (PMI) and Services PMI, which will be used by the market to assess the strength of the UK economic recovery.

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✅ Investment advice

In the current market environment, it is recommended that investors pay attention to the following strategies:

• Long on dips：If the exchange rate rebounds to around 1.3389 and does not fall below it, one can consider going long on dips, with targets at 1.3592 and 1.3874.Action Forex+1Mitrade+1

• Focus on Breakthrough：If the exchange rate breaks through 1.3592, an upward trend can be confirmed, and further targets are set towards 1.3874 and 1.4004.Yingwei Caiqing Investing.com

• Risk Management：If the exchange rate falls below 1.3389, we need to be alert to short-term adjustment risks and may explore the support level of 1.3138.Action Forex+1Mitrade+1

Please note that foreign exchange trading carries high risks, and investors should develop trading strategies based on their own risk tolerance and closely monitor market trends.

———kavan