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

Daily Price Outlook

- GBP/USD shows a minor decline to 1.25513 amid key technical levels.

- RSI and MACD indicators suggest bearish sentiment below $1.2575 resistance.

- Market awaits FOMC decision for potential shifts in currency dynamics.

The GBP/USD pair on December 13th exhibits a slight downward trend, currently positioned at 1.25513, marking a decline of 0.1%. As market participants analyze the currency's movement within the context of global economic developments, the technical outlook presents a nuanced perspective.

In the current trading landscape, the pair is navigating through crucial technical levels. The pivot point is established at $1.2458, serving as a foundation for potential directional shifts. The currency pair confronts immediate resistance at $1.2595, with further hurdles at $1.2682 and $1.2813. On the downside, immediate support looms at $1.2370, followed by stronger levels at $1.2240 and $1.2104.

The technical indicators contribute to this complex picture. The Relative Strength Index (RSI) stands at 44, indicating a bearish sentiment as it remains below the critical 50 threshold. Meanwhile, the Moving Average Convergence Divergence (MACD) reveals a value of 0.00022, contrasting with its signal line at -0.00101, suggesting a potential shift in momentum.

Notably, the 50-Day Exponential Moving Average (EMA) is currently at $1.2556, with the GBP/USD trading just below this mark. This positioning of the EMA is acting as a significant resistance level at $1.2575. The formation of Doji and spinning top candles under this EMA level indicates a selling bias, particularly as the market awaits the outcome of the Federal Open Market Committee (FOMC) meeting.

In conclusion, the GBP/USD pair presents a bearish trend below the $1.2575 resistance level. This sentiment is underpinned by the currency's current positioning relative to key technical indicators and patterns. Traders are likely to maintain a cautious approach, particularly in light of the impending FOMC decision, which could influence short-term market dynamics.

GBP/USD - Trade Idea 

Entry Price – Sell Below 1.25653

Take Profit – 1.24546

Stop Loss – 1.26429

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$1107/ -$776

Profit & Loss Per Mini Lot = +$110/ -$77