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

Daily Price Outlook

- Pivot Sensitivity: GBP/USD’s pivot at $1.29954 is critical; a break below may signal bearish momentum.

- Overbought Warning: RSI at 64 suggests limited upside as the pair nears overbought territory.

- Resistance Challenge: Key resistance levels at $1.30108 and above could determine further bullish potential.

The GBP/USD pair is trading at $1.29868, up 0.56% for the day, as it hovers around a key pivot level at $1.29954. This pivot point will be critical in determining the pair’s next move. Immediate resistance is positioned at $1.30108, followed by further resistance at $1.30262 and a higher target at $1.30431.

A break above these levels could indicate renewed bullish momentum, particularly if GBP/USD sustains above the 50-day Exponential Moving Average (EMA) of $1.29315. With the Relative Strength Index (RSI) reading at 64, the pair is close to overbought territory, signaling that the upside may be limited unless there’s a decisive move past the resistance zone.

On the downside, immediate support lies at $1.29674, with additional layers at $1.29473 and $1.29274. Should the pair drop below $1.29674, selling pressure could increase, pushing GBP/USD toward the 50 EMA, which acts as a significant support barrier. Market sentiment is closely tied to ongoing dollar strength and investor sentiment around the Bank of England’s interest rate outlook, which could influence GBP demand.

For traders, a breach below the pivot at $1.29954 could trigger selling interest, targeting $1.29531. However, a sustained push above $1.30108 would shift the outlook to bullish, with $1.30431 as an upper target in the short term.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.29951

Take Profit – 1.29531

Stop Loss – 1.30263

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$420/ -$312

Profit & Loss Per Mini Lot = +$42/ -$31