Daily Trade Ideas

GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
May 25, 20232 min
Gbpusd

Daily Price Outlook

  • GBP/USD is trading with a bearish bias
  • Key support level breached at 1.2390
  • Waiting for retracement to consider sell position below 1.2395 or around 1.2375

The GBP/USD currency pair is currently trading with a bearish bias as the US dollar strengthens due to solid fundamentals emerging from the US economy. The pair is currently hovering around the 1.2345 level.

On the four-hour timeframe, GBP/USD has formed three consecutive black candles followed by a bearish engulfing candle, indicating dominance by the British base in the market.

The pair has also breached the key support level at 1.2390, and a close below this level suggests a bearish sentiment. The RSI and MACD indicators are both in the oversold zone, signaling a potential bullish correction.

The price is currently in the middle of the upper range at 1.2395 and the lower range at 1.2300. It is advisable to wait for a retracement in the market and consider taking a sell position below 1.2395 or around 1.2375, with a target around 1.2300 or 1.2275.

GBP/USD Price Chart – Source: Tradingview

GBP/USD - Trade Idea

Entry Price – Sell Below 1.23750

Stop Loss – 1.24000

Take Profit – 1.23000

Risk to Reward – 1 : 3

Profit & Loss Per Standard Lot = +$750/ -$250

Profit & Loss Per Micro Lot = +$75/ -$25

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GBP/USD

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