Daily Price Outlook

- GBP/USD hovers near a critical pivot point of $1.31620, leaning towards the bearish side.

- RSI at 39 suggests rising bearish momentum, but there is room before oversold conditions.

- A break below $1.31218 could drive the pair lower toward $1.30410, with support levels in focus.

The GBP/USD pair is trading at $1.31136, with a modest gain of 0.01%. Currently, the pair is hovering near a crucial pivot point at $1.31620, signaling potential indecision in the market.

The 50-day Exponential Moving Average (EMA) rests at $1.31695, just above the current price level, reinforcing the significance of the resistance at $1.31880. A break above this resistance could open the door for gains toward $1.32269, but for now, the downside appears to dominate the outlook.

The Relative Strength Index (RSI) is at 39, suggesting that bearish momentum is gaining strength, but it is not yet in oversold territory. If the pair breaks below the immediate support at $1.31218, we could see a test of lower levels, with the next support sitting at $1.30784. Further declines may push GBP/USD toward $1.30410 and $1.30111, which will be key areas for bulls to defend.

For today, the key battle lies around the $1.31620 pivot. A failure to break this level would likely result in a bearish continuation, with selling pressure intensifying if $1.31218 is breached. On the upside, a break above $1.31880 could trigger a bullish reversal, but the pair remains constrained by the broader downward trend.

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

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.31218

Take Profit – 1.30649

Stop Loss – 1.31504

Risk to Reward – 1: 1.9

Profit & Loss Per Standard Lot = +$569/ -$286

Profit & Loss Per Mini Lot = +$56/ -$28

GBP/USD

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