Daily Price Outlook

- Pivot Point Crucial: GBP/USD at $1.2873; breaking below could confirm a bearish trend, above signals potential recovery.

- Support Levels: Immediate support at $1.2803; a break here may lead to further downside towards $1.2756.

- RSI Near Overbought: RSI at 65 suggests limited upside; a potential pullback could occur if resistance holds.

GBP/USD is currently trading at $1.28398, down 0.06% as it edges closer to key support levels. The currency pair is slightly below its pivot point of $1.2873, which is a critical level to monitor.

The daily chart shows that GBP/USD is in a delicate position, balancing between potential further losses and a possible recovery.

Immediate support is found at $1.2803, with subsequent supports at $1.2756 and $1.2701. If the pair breaks below these levels, it could signal a bearish continuation, potentially driving the price lower.

On the upside, resistance lies at $1.2934, followed by $1.2978 and $1.3030. A move above the pivot point at $1.2873 could shift momentum back in favor of the bulls, setting the stage for a test of these resistance levels.

The RSI is at 65, indicating that the pair is nearing overbought territory but still has some room to climb if buying pressure increases.

The 50-day Exponential Moving Average (EMA) at $1.2757 is providing solid support and aligning with the overall uptrend seen in recent sessions.

For traders considering a short position, an entry below $1.28551 could be strategic, with a take profit target at $1.27910. A stop-loss at $1.29034 would help manage risk if the pair unexpectedly moves higher.

The current technical setup suggests that GBP/USD could experience further downside pressure, but a break above the pivot could quickly change the outlook.

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

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.28551

Take Profit – 1.27910

Stop Loss – 1.29034

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$641/ -$483

Profit & Loss Per Mini Lot = +$64/ -$48

GBP/USD

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