GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

The GBP/USD currency pair has recently shown some interesting behavior. Having reached the previously anticipated target of 1.2280, the pair displayed a bearish rebound from this level. This move hints at a potential return to its primary bearish trajectory, reinforced by the bearish channel visible on the chart. With this, there's an anticipation of the pair heading toward the 1.2110 mark, establishing it as the next key bearish target.

Given this backdrop, the forecast for today leans bearish. This outlook is further supported by the negative influence exerted by the 50-Day Exponential Moving Average (EMA50). However, it's important to note a key resistance level at 1.2280. Should the GBP/USD break above this point, it could potentially steer the currency pair towards a bullish correction, with the next target set at 1.2350. For the day, the trading range is predicted to lie between the 1.2100 support and the 1.2250 resistance.

Zooming in on the technical indicators:

RSI (Relative Strength Index): Currently standing at 46, the RSI provides a neutral-to-bearish sentiment. Typically, an RSI value above 70 denotes overbought conditions, whereas anything below 30 indicates oversold conditions. In its current state, being below 50, the RSI slightly leans towards a bearish sentiment.

In conclusion, the GBP/USD's trajectory for today is expected to be predominantly bearish, given the current technical indicators and recent price actions. Traders should, however, remain vigilant around the 1.2280 resistance level, as any breach could modify the short-term outlook.

GBP/USD - Trade Idea

Entry Price – Sell Below 1.21981

Take Profit – 1.21036

Stop Loss – 1.22868

Risk to Reward – 1: 1

Profit & Loss Per Standard Lot = +$945/ -$887

Profit & Loss Per Micro Lot = +$94/ -$88