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

Daily Price Outlook

- Entry Strategy: Consider selling below $1.29118, targeting $1.28273, with a stop loss at $1.29526.

- Immediate Support: Key support at $1.28134; further downside risk if this level fails.

- Technical Indicators: RSI at 31 indicates potential for a minor bounce, but overall trend remains bearish.

The British pound is under pressure against the U.S. dollar, with GBP/USD dropping to $1.28510, reflecting a 1.45% decline on the day. The pair has slipped below key support levels, signaling a bearish outlook as the dollar strengthens.

The immediate support now stands at $1.28134, with further downside targets at $1.27817 if selling momentum continues. On the upside, resistance sits at $1.29125, with additional resistance levels at $1.29524 (pivot) and $1.29950. A break above these levels would be necessary to ease the bearish tone, though current indicators suggest that the pound is likely to remain under pressure in the near term.

Technical indicators paint a bearish picture, with the 50-day EMA positioned at $1.29512, well above the current price. This moving average underscores the downward trend and suggests limited upside potential for the pound unless it can reclaim levels above $1.29524.

The RSI stands at 31, edging close to oversold territory. Although this level could suggest a short-term bounce, the broader trend remains bearish, particularly as dollar strength persists.

For traders, a short position below the pivot of $1.29118 may be prudent, with a take-profit target near $1.28273 and a stop loss at $1.29526. With the pound struggling to find traction, maintaining positions below key levels aligns with current market sentiment.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.29118

Take Profit – 1.28273

Stop Loss – 1.29526

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$845/ -$408

Profit & Loss Per Mini Lot = +$84/ -$40