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

Daily Price Outlook

- GBP/USD faces resistance at the 50 EMA, around $1.2944.

- RSI at 41 indicates potential room for further downside.

- A short entry is favored below $1.2944, targeting $1.2928.

The British pound (GBP/USD) is trading slightly higher at $1.2909, marking a modest 0.05% gain on the day. The currency pair’s price action has remained confined within a tight range, with immediate technical levels providing both resistance and support.

The pivot point is positioned at $1.2925, offering a key reference for potential price fluctuations. GBP/USD faces immediate resistance at $1.2949, just above the 50-day Exponential Moving Average (EMA) at $1.2944. This EMA level serves as a significant resistance point, and a failure to breach it may keep the pound under pressure.

Further resistance is seen at $1.2974, with additional upside capped by the next key level at $1.3007. On the downside, immediate support lies at $1.2893. If bearish sentiment increases, the pair could test the next support at $1.2865, with a further drop potentially extending to $1.2834.

Technical indicators suggest a neutral to slightly bearish outlook. The Relative Strength Index (RSI) is at 41, indicating that there is still room for the pound to decline before reaching oversold levels. The 50 EMA at $1.2944 represents a critical threshold, and a close below this level would reinforce the bearish bias.

Traders may consider a potential short entry below $1.2944, targeting a take-profit level at $1.2928 and setting a stop-loss above the $1.2949 resistance

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.29242

Take Profit – 1.28724

Stop Loss – 1.29501

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$518/ -$259

Profit & Loss Per Mini Lot = +$51/ -$25