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

Daily Price Outlook

- GBP/USD trades below pivot point, signaling bearish pressure.

- RSI at 35 indicates oversold conditions, potential for a short-term bounce.

- Key support levels to watch: 1.2645, 1.2613, 1.2581.

The GBP/USD pair is facing downward pressure, trading below its pivot point of 1.2678 on the 4-hour chart. The 50-day Exponential Moving Average (EMA) at 1.2758 is acting as a significant resistance, further solidifying the bearish outlook.

The Relative Strength Index (RSI) reading of 35 indicates oversold conditions, hinting at a potential bounce in the near term. However, the broader trend remains bearish, and traders should exercise caution.

Key resistance levels to monitor are 1.2723, 1.2765, and 1.2808. A break above these levels could negate the bearish bias and signal a potential reversal. On the downside, immediate support lies at 1.2645, followed by 1.2613 and 1.2581.

A decisive break below these levels could trigger further selling pressure, potentially leading to a deeper decline for the pound.

GBP/USD- Trade Ideas

Entry Price – Buy Above 1.26525

Take Profit – 1.27085

Stop Loss – 1.26180

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$560/ -$345

Profit & Loss Per Mini Lot = +$56/ -$34