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

Daily Price Outlook

- Bearish Bias: GBP/USD is under pressure below the $1.3156 pivot, with the RSI at 40 indicating further downside risk.

- Resistance Levels: Immediate resistance is seen at $1.3188, with additional targets at $1.3227 and $1.3265.

- Support Levels: Key support is found at $1.3119, followed by $1.3078 and $1.3041.

The GBP/USD pair is currently trading at $1.31347, showing a slight uptick of 0.02% in early trading.

The currency pair is hovering just below the pivotal $1.3156 level, which serves as a crucial point in determining the next directional move.

The 4-hour chart indicates that the pair faces immediate resistance at $1.3188, which aligns closely with the 50-day Exponential Moving Average (EMA).

A break above this level could push the pair towards the next resistance levels at $1.3227 and $1.3265.

On the downside, GBP/USD finds immediate support at $1.3119, with further support levels at $1.3078 and $1.3041.

The Relative Strength Index (RSI) is currently at 40, signaling that the pair is leaning towards a bearish trend, but is not yet in oversold territory.

This suggests that there could be more room for downside movement if the pair fails to hold above the key pivot point at $1.3156.

Given the current technical setup, traders might consider short positions below $1.3156, with a potential target around $1.3111.

Conversely, a break above $1.3188 would likely invalidate this bearish outlook, potentially setting the stage for a rally towards the $1.3227 level and beyond.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.31556

Take Profit – 1.31111

Stop Loss – 1.31865

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$445/ -$309

Profit & Loss Per Mini Lot = +$44/ -$30