Daily Price Outlook 

- GBP/USD trades at 1.25998, down 0.28%; pivot point at 1.25768 indicates bearish sentiment.

- Key resistances at 1.26240, 1.26891, 1.27375; supports at 1.28014, 1.25271, 1.24786.

- Technical indicators (RSI at 26, MACD at -0.00123) and chart patterns suggest a bearish outlook with potential for further decline.

On January 17, the GBP/USD pair is trading at 1.25998, showing a decline of 0.28%. This movement in the forex market is critical for traders focusing on the short-term trends of the British Pound against the US Dollar. The 4-hour chart timeframe provides a detailed view of the key price levels that are pivotal for the day's trading.

The pivot point for GBP/USD is set at 1.25768, serving as a crucial juncture for determining the pair's direction. Resistance levels are identified at 1.26240, 1.26891, and 1.27375, which could pose challenges for bullish movements. Conversely, support levels are found at 1.28014, 1.25271, and 1.24786, offering potential floors for the pair.

Technical indicators shed light on the pair's momentum. The RSI is at a low of 26, indicating an oversold market condition that might lead to a potential rebound. The MACD stands at -0.00123, with the MACD line below the signal line at -0.00315, suggesting a bearish trend. The 50-Day EMA is currently at 1.26999, reinforcing the resistance zone.

A significant chart pattern observed is the violation of the upward trendline around the 1.2645 mark. The formation of a bearish engulfing pattern below this level suggests a selling trend, indicating a potential continuation of the downward momentum.

The overall trend for GBP/USD appears bearish. Traders might consider a sell strategy below 1.26381, with a take profit target at 1.25876 and a stop loss at 1.26702. The short-term forecast suggests the pair may test lower support levels, unless it breaks above the immediate resistance.

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

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.26381

Take Profit – 1.25876

Stop Loss – 1.26702

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$505/ -$321

Profit & Loss Per Mini Lot = +$50/ -$32



24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.