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

Daily Price Outlook

- Key Resistance: Immediate resistance is at $1.3255, followed by $1.3299.

- Pivot Point: $1.3220 is the critical level for potential price direction.

- Immediate Support: $1.3165 could see increased selling pressure if breached.

The British Pound (GBP) is currently trading at $1.31995 against the US Dollar (USD), reflecting a slight decline of 0.14% in today’s session.

On the 4-hour chart, GBP/USD is flirting with the critical pivot point at $1.3220, which has been a key level of interest for traders.

The currency pair’s recent price action suggests that the market is at a crossroads, with potential for both upward and downward movement depending on how it interacts with this pivot.

The Relative Strength Index (RSI) is hovering around 73, indicating that the pair is nearing overbought territory.

This elevated RSI suggests that the upward momentum may be losing steam, making it increasingly likely that we could see a pullback.

However, as long as GBP/USD stays above the 50-day Exponential Moving Average (EMA), currently positioned at $1.3092, the broader uptrend remains intact.

Resistance levels to watch include $1.3255 as the immediate barrier, followed by $1.3299 and $1.3340.

A break above these levels could reinvigorate the bullish trend, pushing the pair toward new highs. On the downside, immediate support is found at $1.3165, with further support at $1.3121 and $1.3078.

A breach of $1.3165 could trigger a more pronounced sell-off, potentially bringing the pair back down to test the lower support levels.

Conclusion: The market remains cautiously optimistic but is showing signs of overextension.

Traders might consider selling below the $1.3220 pivot point, aiming for a take profit around $1.3165 and setting a stop loss near $1.3255. Keep an eye on the RSI and the 50 EMA for any shifts in momentum.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.32206

Take Profit – 1.31626

Stop Loss – 1.32547

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$580/ -$341

Profit & Loss Per Mini Lot = +$58/ -$34