Daily Price Outlook

- GBP/USD remains under pressure, trading below key resistance at 1.3174 amid a bearish outlook.

- RSI at 39 signals continued downside risk; immediate support levels are 1.3071 and 1.3037.

- Break below 1.31350 may trigger further declines, targeting the 1.30700 level with limited upside potential.

The GBP/USD pair has shown marginal gains, trading at 1.31157, up 0.03% in the 4-hour timeframe. The pair remains in a consolidation phase as it struggles to sustain any significant momentum above the 1.3135 pivot point. Despite modest gains, the technical picture remains skewed towards the downside, with the British Pound under pressure amid a stronger U.S. dollar and concerns over the UK’s economic outlook.

On the technical front, the 50-day Exponential Moving Average (EMA) at 1.3205 acts as a critical resistance level, with the Relative Strength Index (RSI) reading at 39, signaling bearish sentiment. Immediate resistance for the pair is seen at 1.3174, followed by 1.3216 and 1.3251. If the pair manages to break above these levels, it may signal a reversal in trend. However, with the RSI below 50, a continuation of the downtrend is more likely.

On the downside, immediate support sits at 1.3071, followed by stronger support levels at 1.3037 and 1.3003. A break below the 1.3071 mark could accelerate bearish momentum and open the door for further declines towards the 1.3000 psychological level.

Conclusion: With the RSI signaling a bearish bias and the pair trading below the 50 EMA, a sell-off below 1.31350 is recommended. The take-profit target is set at 1.30700, while a stop loss at 1.31750 limits risk.

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

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.31350

Take Profit – 1.30700

Stop Loss – 1.31750

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$650/ -$400

Profit & Loss Per Mini Lot = +$65/ -$40

GBP/USD

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