Daily Price Outlook
* GBP/USD trading with a slight downward bias around 1.2469 level.
* Downtrend line on the two-hour timeframe poses a significant obstacle at 1.2500 level.
* Potential support levels at 1.2450, 1.2385, and 1.2365 if GBP/USD continues to decline. Resistance at 1.2545 if it breaks above 1.2506 level.
On Thursday, the GBP/USD currency pair is trading with a slight downward bias around the 1.2469 level. The GBP/USD movement is currently constrained as the downtrend line on the two-hour timeframe poses a significant obstacle around the 1.2500 level.
The British pound's recent dip below the 50-day exponential moving average indicates a potential decline towards the support level of 1.2450, with further downside targets at 1.2385 or 1.2365. Conversely, a break above the 1.2506 level could lead to a test of the next resistance level at 1.2545.
Notably, the RSI and MACD indicators show divergence, with RSI holding in the selling zone while MACD histogram remains above zero.
These conflicting signals suggest a cautious approach, with the recommendation to seek selling opportunities below the 1.2500 level, setting a stop loss around 1.2520 and targeting 1.2425.
GBP/USD - Trade Idea
Entry Price – Sell Below 1.2500
Stop Loss – 1.2520
Take Profit – 1.2425
Risk to Reward – 1 : 1.8
Profit & Loss Per Standard Lot = +$517/ -$287
Profit & Loss Per Micro Lot = +$51/ -$28
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