Daily Price Outlook
* The GBP/USD currency pair displays a slight bullish bias and faces major resistance at the 1.2505 level, reinforced by a triple top pattern on the four-hourly timeframe.
* Technical indicators, including RSI and MACD, suggest a buying trend, with the 50-day EMA supporting an upward move in GBP.
* The GBP/USD pair has formed an ascending triangle pattern, indicating a potential bullish breakout; the strategy is to buy above 1.2445 support and target 1.2550 resistance, or target 1.2399 if it breaks below 1.2445.
On Friday, the GBP/USD currency pair is trading with a slight bullish bias around the 1.2487 level. At the moment, it is facing major resistance at the 1.2505 level, which is evident on the four-hourly timeframe. This particular resistance level is reinforced by a triple top pattern on the same timeframe.
Examining the technical indicators, the RSI and MACD are situated in the buying zone, and the 50-day exponential moving average (EMA) also suggests a buying trend. The EMA is holding around the 1.2470 level, and the closing of candles above this particular EMA line supports an upward move in GBP.
Upon zooming out on the four-hourly timeframe, the GBP/USD currency pair has formed an ascending triangle pattern, which typically has a tendency to break out on the bullish side. Therefore, today's strategy is to look for a buying position above a support level of 1.2445. A bullish break above the 1.2505 resistance level could push sterling towards the next resistance level of 1.2550. Alternatively, if GBP breaks below 1.2445, it has the potential to target the 1.2399 level.
GBP/USD – Trade Ideas
Entry Price – Buy Limit 1.2444
Stop Loss – 1.2384
Take Profit – 1.2550
Risk to Reward – 1 : 1.7
Profit & Loss Per Standard Lot = +$1,050/ -$600
Profit & Loss Per Micro Lot = +$105/ -$60
Please click here to read and acknowledge our Trade Ideas Disclaimer before using these ideas in your strategies and trading. This document’s information, including forex signals and research, is for general informational and educational purposes only and does not provide specific financial, investment, or trading advice.
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