Daily Price Outlook
- GBP/USD pair stands on neutral ground, prancing around 1.2730 after a daring encounter with the 1.2760 resistance.
- Our main characters, the Relative Strength Index and Moving Average Convergence Divergence indicators, indicate a standoff between buyers and sellers.
- A bullish breakout at 1.2760 or a bearish breakout at 1.2695 could set the stage for the next act in this currency.
- In the currency trading scene, the GBP/USD pair has adopted a neutral stance, maintaining its position around the 1.2730 level following its previous brush with the 1.2760 resistance level.
On the shorter time frame, we observe the formation of a descending triangle pattern, with its upper boundary at 1.2760 and a triple bottom support area solidified at the 1.2690 level.
Adding a further layer of complexity to the market dynamics, the Relative Strength Index and the Moving Average Convergence Divergence indicators have been oscillating between the buying and selling zones. This signals an ongoing indecision among the market participants.
On the support front, the 50-day Exponential Moving Average is bolstering the GBP/USD pair at the 1.2720 level. Given these factors, we are eyeing potential breakout points.
A bullish breakout above 1.2760 or conversely, a bearish breakout below 1.2695 could dictate the next significant market move. If a bearish breakout occurs, the pair may venture down towards 1.2660 or even 1.2633. Alternatively, resistance levels to consider on the upside are positioned at 1.2800 and 1.2840.
GOLD Price Chart – Source: Tradingview
GBP/USD – Trade Idea
Entry Price – Buy Above 1.27108 Take Profit – 1.28004 Stop Loss – 1.26692 Risk to Reward – 1: 2 Profit & Loss Per Standard Lot = +$896/ -$416 Profit & Loss Per Micro Lot = +$89/ -$41
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