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

Daily Price Outlook

- Bearish Bias: GBP/USD trades below the pivot point at $1.31065, indicating sustained selling pressure.

- Immediate Support Levels: Key support stands at $1.30595; a break below could lead to further declines.

- RSI at 41: RSI is nearing oversold territory, signaling potential for stabilization if support holds above $1.30595.

The British Pound (GBP/USD) is trading lower at $1.30776, down 0.21% on the day, as bearish sentiment prevails. On the 4-hour chart, the pair is currently hovering below the pivot point at $1.31065, indicating selling pressure. Immediate resistance is located at $1.31345, followed by $1.31666 and $1.31972, suggesting that the pair needs to clear these levels to signal a potential bullish reversal.

On the downside, immediate support is found at $1.30595, with further levels at $1.30320 and $1.30021 providing additional protection. A drop below these levels could increase downside momentum. The 50-day Exponential Moving Average (EMA) at $1.31060 is positioned close to the pivot point, acting as a strong resistance. The Relative Strength Index (RSI) stands at 41, which is approaching oversold territory but remains neutral.

Given the current market structure, traders might consider a buying opportunity above $1.30588, targeting the pivot point at $1.31065 with a stop-loss set below $1.30310. However, failing to hold above $1.30595 could lead to further selling pressure, pushing the pair toward $1.30320. For a potential bullish reversal, GBP/USD would need to sustain a move above $1.31065, which could open the path toward $1.31345 and beyond.

GBP/USD - Trade Ideas

Entry Price – Buy Above 1.30588

Take Profit – 1.31065

Stop Loss – 1.30310

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$477/ -$278

Profit & Loss Per Mini Lot = +$47/ -$27