Daily Price Outlook

    On October 16, the GBP/USD currency pair observed a modest uptick, registering a price of 1.21614, reflecting a gain of approximately 0.15% during the Asian trading window. This movement has been captured over a 4-hour chart timeframe, presenting critical data and inferences.

    An essential metric, the pivot point, is identified at 1.22047 for the GBP/USD pair. On the upside, potential resistance levels are established at 1.22815, followed by a stronger resistance at 1.24174, culminating at the significant 1.24971. Conversely, should the pair experience downward traction, the immediate support to be mindful of stands at 1.20658. Subsequent layers of support solidify at 1.1989 and deepen further at 1.18532.

    Shifting focus to key technical indicators, the Relative Strength Index (RSI) for the GBP/USD is valued at 40. While this doesn't immediately indicate overbought or oversold conditions, it's verging on a bearish sentiment. The Moving Average Convergence Divergence (MACD) reveals a value of -0.0014, with its signal line positioned at -0.0021. This formation suggests that the MACD line resides above the signal line, potentially hinting at an upcoming bullish momentum. Meanwhile, the 50-Day Exponential Moving Average (EMA) is calculated at 1.22131. Since the current GBP/USD price is slightly below this EMA, it points towards a short-term bearish sentiment.

    In conclusion, the 50 EMA coupled with the recently breached upward channel is now establishing resistance at 1.2228. This resistance level holds significance and is one traders and investors might want to keep an eye on for future movements.

    GBP/USD Price Chart – Source: Tradingview
    GBP/USD Price Chart – Source: Tradingview

    GBP/USD - Trade Idea

    Entry Price – Sell Limit 1.22041

    Take Profit – 1.21197

    Stop Loss – 1.22528

    Risk to Reward – 1: 1.7

    Profit & Loss Per Standard Lot = +$844/ -$487

    Profit & Loss Per Micro Lot = +$84/ -$48



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