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

Daily Price Outlook

- Immediate Resistance: $1.3097; next at $1.3133 and $1.3174.

- Immediate Support: $1.2978; further at $1.2933 and $1.2887.

- RSI at 75: Overbought conditions suggest potential for a bearish pullback

GBP/USD is currently trading at $1.30261, down by 0.03% as the pair hovers around its immediate support levels.

The 4-hour chart indicates that the pivot point is set at $1.3040, which is critical for determining the next direction. Immediate resistance is at $1.3097, followed by $1.3133 and $1.3174.

On the downside, the immediate support lies at $1.2978, with additional support at $1.2933 and $1.2887.

The Relative Strength Index (RSI) is currently at 75, suggesting that GBP/USD is in overbought territory, which might trigger a pullback.

Meanwhile, the 50-day Exponential Moving Average (EMA) is at $1.2872, reinforcing the bearish outlook if the pair fails to break above its pivot point.

Given the overbought RSI and the resistance levels ahead, there’s a good chance we could see some selling pressure emerge.

If the pair fails to maintain its position above $1.3040, a bearish correction might ensue, driving the price towards the next support levels.

Conclusion: Selling below $1.30398 could be a strategic move, with a target profit at $1.29802 and a stop loss at $1.30911.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.30398

Take Profit – 1.29802

Stop Loss – 1.30911

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$596/ -$513

Profit & Loss Per Mini Lot = +$59/ -$51