Daily Price Outlook
- GBPUSD pair tests resistance at 1.1940, showing stability below the level.
- Stochastic oscillator signals potential for a decline in future sessions.
- Bearish outlook remains valid unless price breaks above 1.1940 and 1.2020 levels.
The GBPUSD pair continued its upward movement, testing the resistance line at 1.1940. However, it remains stable below this level, with the EMA50 providing additional strength to the resistance. The pair is anticipated to resume its corrective bearish wave, targeting the key level at 1.1625.
The Stochastic oscillator is currently displaying clear negative signals, indicating a potential decline in the upcoming sessions. The price action is confined within a bearish channel visible on the chart.
Hence, our bearish outlook remains valid and active. It is worth noting that a breakthrough above 1.1940, followed by 1.2020, would invalidate the expected decline and lead to a price recovery.
At 11:00 AM, the Bank of England (BOE) released its monetary policy decisions. The MPC Official Bank Rate Votes showed a unanimous decision of 7-0-2, indicating that all seven members voted to maintain the current bank rate, while two members voted for a rate cut.
The Monetary Policy Summary provided an overview of the BOE’s assessment of the economy and its policy outlook.
The Official Bank Rate remained unchanged at 4.50%. This decision reflects the BOE’s commitment to supporting the economy and ensuring price stability. Let’s also keep an eye on it.
GBP/USD Price Chart – Source: Tradingview
GBP/USD – Trade Idea
Entry Price –Buy Limit 1.27110
Take Profit – 1.27962
Stop Loss – 1.26766
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$852/ -$344
Profit & Loss Per Micro Lot = +$85/ -$34
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