Daily Price Outlook
- GBP/USD found strong support at 1.2625 and rebounded to test key resistance at 1.2725.
- Stochastic indicator shows weakening positive momentum, EMA50 exerts downward pressure.
- Outlook suggests potential for renewed bearish movement, targeting retest of 1.2625. Breach of 1.2725 could trigger reversal towards higher levels.
The GBP/USD currency pair has encountered robust support at the 1.2625 level, prompting a substantial upward rebound that led to a robust test of the pivotal resistance at 1.2725. It's worth noting that the stochastic indicator is displaying evident signs of waning positive momentum, while the EMA50 is exerting downward pressure on the price movement.
Considering these factors, we hold the view that the conditions are conducive for a resumption of bearish trading dynamics in the forthcoming trading sessions. The initial targets in this projection involve a retest of the 1.2625 level. It is important to acknowledge that breaching the 1.2725 resistance level would invalidate the bearish scenario, potentially initiating a reversal towards higher price levels.
The projected trading range for the current day spans from the support level of 1.2620 to the resistance level of 1.2780. The prevailing trend for today is anticipated to lean towards the bearish side.
GBP/USD - Trade Idea
Entry Price – Sell Below 1.27292
Take Profit – 1.26658
Stop Loss – 1.27701
Risk to Reward – 1: 1.5
Profit & Loss Per Standard Lot = +$634/ -$409
Profit & Loss Per Micro Lot = +$63/ -$40
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