GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: Immediate resistance at $1.27565, with higher barriers at $1.27926 and $1.28300 as potential targets.
- Support Levels: Immediate support at $1.26714, followed by $1.26272 and $1.25630 for downside risk.
- Technical Indicators: RSI at 61 supports bullish momentum; 50-day EMA at $1.26601 offers key support for trend validation.
GBP/USD is trading at $1.27004, up 0.18%, showing modest bullish momentum as it hovers near the pivot point at $1.27205. Immediate resistance lies at $1.27565, followed by $1.27926, marking key levels for potential upward continuation.
The 50-day EMA at $1.26601 acts as a critical support zone, closely aligned with the immediate support level at $1.26714. Further downside support levels to watch are $1.26272 and $1.25630.
The Relative Strength Index (RSI) stands at 61, suggesting that bullish momentum is gaining traction but remains below overbought conditions. The pair is trading above the 50-day EMA, reinforcing the short-term bullish bias. However, failure to sustain above $1.27205 could push prices back toward support zones, risking a shift in sentiment.
Traders are advised to consider buying above $1.26814, targeting $1.27281 with a stop loss at $1.26592. A sustained break above $1.27565 could confirm further gains, while a move below $1.26714 would test the pair’s resilience.
GBP/USD maintains a bullish bias above $1.27205, targeting $1.27565. A break above resistance could signal further gains, while failure to hold above $1.26714 may shift the trend to bearish.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.26814
Take Profit – 1.27281
Stop Loss – 1.26592
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$467/ -$222
Profit & Loss Per Mini Lot = +$46/ -$22
GBP/USD Price Analysis – Nov 20, 2024
Daily Price Outlook
During the European trading session, the GBP/USD currency pair struggled to maintain its bullish momentum and dropped to around the 1.2663 level, hitting an intraday low of 1.2649. This decline occurred despite stronger-than-expected inflation data from the UK.
However, the GBP/USD pair surrendered its gains as the US Dollar regained strength. The US Dollar Index (DXY) surged to approximately 106.50, driven by expectations that the Federal Reserve will implement fewer interest rate cuts in 2025.
BoE's Inflation Concerns Spark Shift in Rate Cut Expectations for December
On the data front, the Consumer Price Index (CPI) revealed that annual inflation jumped to 2.3%, higher than the 2.2% forecast and the previous month's 1.7%. Compared to September, inflation rose by 0.6%, exceeding the expected 0.5% increase.
Core CPI, which excludes food, energy, oil, and tobacco, grew by 3.3%, higher than the previous 3.2% and above the 3.1% expected. Services inflation, which the Bank of England (BoE) closely monitors, also rose to 5% from 4.9%.
As a result, traders have started to rethink expectations for future interest rate cuts by the BoE. Just a day earlier, markets had priced in an 80% chance that the BoE would cut rates by 25 basis points in December.
Several BoE policymakers, including Governor Andrew Bailey, warned that inflation pressures are still strong. Bailey said that services inflation is too high to reach the BoE's target, and Catherine Mann, a BoE member known for her hawkish stance, pointed out that the BoE may struggle to bring inflation down to 2% anytime soon. These comments suggest the BoE might delay rate cuts if inflation remains stubborn.
Impact of Stronger US Dollar and Diminished Fed Rate Cut Expectations on GBP/USD
On the US front, the GBP/USD pair lost its gains as the US Dollar strengthened sharply, with the US Dollar Index (DXY) rising to around 106.50. This increase came from expectations that the Federal Reserve (Fed) will take a slower approach to interest rate cuts in 2025.
With President-elect Donald Trump about to take office, markets believe his policies, such as higher import tariffs and lower taxes, will boost the US economy, raising inflation and encouraging domestic demand and employment. This is causing investors to adjust their expectations for future Fed rate cuts.
As a result, the chances of a 25 basis point rate cut by the Fed in December have dropped from over 82% last week to 59%, according to the CME FedWatch tool. This shift in expectations followed remarks from Fed Chair Jerome Powell, who said the economy isn’t showing signs that the central bank needs to rush into rate cuts.
Looking ahead, investors will focus on the flash S&P Global Purchasing Managers' Index (PMI) data for November, which is due on Friday. The data is expected to show growth in the US private sector, while activity in the UK is expected to remain steady.
Therefore, the strengthening US Dollar and reduced expectations for Fed rate cuts in December have put downward pressure on the GBP/USD pair, leading to a loss of gains and a pullback from higher levels.
GBP/USD – Technical Analysis
GBP/USD is trading at $1.27004, up 0.18%, showing modest bullish momentum as it hovers near the pivot point at $1.27205. Immediate resistance lies at $1.27565, followed by $1.27926, marking key levels for potential upward continuation.
The 50-day EMA at $1.26601 acts as a critical support zone, closely aligned with the immediate support level at $1.26714. Further downside support levels to watch are $1.26272 and $1.25630.
The Relative Strength Index (RSI) stands at 61, suggesting that bullish momentum is gaining traction but remains below overbought conditions. The pair is trading above the 50-day EMA, reinforcing the short-term bullish bias. However, failure to sustain above $1.27205 could push prices back toward support zones, risking a shift in sentiment.
Traders are advised to consider buying above $1.26814, targeting $1.27281 with a stop loss at $1.26592. A sustained break above $1.27565 could confirm further gains, while a move below $1.26714 would test the pair’s resilience.
GBP/USD maintains a bullish bias above $1.27205, targeting $1.27565. A break above resistance could signal further gains, while failure to hold above $1.26714 may shift the trend to bearish.
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GBP/USD Price Analysis – Nov 18, 2024
Daily Price Outlook
The Pound Sterling recovers marginally following dismal UK GDP-driven selling on Friday.
The Pound Sterling (GBP) edged higher against its major peers on Monday, attempting to regain ground after Friday's sell-off. The British pound plummeted dramatically when the Office for National Statistics (ONS) reported that the GDP unexpectedly shrunk by 0.1% in September. The figures also showed that the economy increased slowly in the third quarter.
The unexpected dip in UK GDP may lead to further interest rate reduction by the Bank of England (BoE).
Markets will be focusing almost entirely on the services inflation figure, which the analysts expect to rise somewhat from 4.9% to 5.0%. However, when we remove sectors that are less relevant to the Bank of England, 'core services' inflation falls significantly to 4.3%.
That would be good news for the BoE, but not likely enough to warrant another cut in December. In addition, markets may focus more on the 'non-core' services CPI data, maintaining to cautious BoE pricing and putting a cap on the recent modest bounce in EUR/GBP.
The UK's economic future is projected to become more uncertain as the government struggles to decide between increasing trade links with the European Union (EU) and the United States.
UK Faces Economic Dilemma Between EU and US Models as GBP Struggles Amid Strong USD
The United Kingdom is caught between these two types of economic models, and I believe the country would benefit from adopting more of the American model of economic independence. And if that were the case, Moore believes it would increase the Trump administration's desire to pursue the free trade pact with the UK. His remarks came as BoE Governor Andrew Bailey encouraged the administration to rebuild relations with the European Union.
During Monday's London session, the pound sterling remained under pressure near 1.2600 against the US dollar. The GBP/USD pair struggles to find traction as the US Dollar maintains gains near a more-than-a-year high, while the US Dollar Index (DXY) hovering around 107.00.
The greenback trades firmly as investors expect the Federal Reserve (Fed) to take a more cautious rate-cutting approach given the recent minor rise in inflation and the growth forecast based on strong anticipation that President-elect Donald Trump would be able to carry out his economic program efficiently.
GBP/USD – Technical Analysis
The GBP/USD pair is trading at $1.26203, up a modest 0.03% on the day, as it consolidates within a tight range near critical support levels. The pivot point at $1.26900 serves as a key hurdle for the pair, and a breakout above this level could open the door to immediate resistance at $1.27452.
If bullish momentum persists, the next upside targets are $1.27924. However, the downside remains vulnerable, with immediate support at $1.25957, followed by stronger support at $1.25073 and $1.24513.
The 50-day Exponential Moving Average (EMA) at $1.30541 reflects a bearish trend in the broader outlook, as prices remain well below this longer-term indicator. The Relative Strength Index (RSI) is currently at 30, signaling that the pair is oversold, which could set the stage for a potential technical rebound.
In the 4-hour chart, GBP/USD shows signs of downward pressure as it trades below the pivot point. A buy-limit entry at $1.26095 could offer traders a strategic opportunity, targeting a take-profit level of $1.26911. However, caution is warranted, with a stop-loss placed at $1.25462 to limit downside risk.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Point at $1.26900: A breakout above this level is key for further upside momentum.
- RSI at 30: Oversold conditions suggest potential for a technical rebound.
- 50 EMA at $1.30541: Reflects bearish long-term sentiment as prices trade well below.
The GBP/USD pair is trading at $1.26203, up a modest 0.03% on the day, as it consolidates within a tight range near critical support levels. The pivot point at $1.26900 serves as a key hurdle for the pair, and a breakout above this level could open the door to immediate resistance at $1.27452.
If bullish momentum persists, the next upside targets are $1.27924. However, the downside remains vulnerable, with immediate support at $1.25957, followed by stronger support at $1.25073 and $1.24513.
The 50-day Exponential Moving Average (EMA) at $1.30541 reflects a bearish trend in the broader outlook, as prices remain well below this longer-term indicator. The Relative Strength Index (RSI) is currently at 30, signaling that the pair is oversold, which could set the stage for a potential technical rebound.
In the 4-hour chart, GBP/USD shows signs of downward pressure as it trades below the pivot point. A buy-limit entry at $1.26095 could offer traders a strategic opportunity, targeting a take-profit level of $1.26911. However, caution is warranted, with a stop-loss placed at $1.25462 to limit downside risk.
GBP/USD - Trade Ideas
Entry Price – Buy Limit 1.26095
Take Profit – 1.26911
Stop Loss – 1.25462
Risk to Reward – 1: 1.29
Profit & Loss Per Standard Lot = +$816/ -$633
Profit & Loss Per Mini Lot = +$81/ -$63
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Oversold Condition: RSI at 26 suggests potential for a technical rebound.
- Resistance Levels: Key resistance at $1.28321 and $1.28694 limits upside.
- Buy Signal: Potential buy entry above $1.27201, targeting $1.27858.
The GBP/USD pair is trading at $1.27385, down 0.07% on the day, indicating a slight bearish tilt as the British pound remains under pressure against the U.S. dollar.
The pivot point for GBP/USD is at $1.27823, a critical level for gauging market direction in the near term. A sustained move above this point could signal a bullish shift, though immediate resistance at $1.28321 and further resistance at $1.28694 may limit any substantial recovery.
On the downside, immediate support sits at $1.27201, followed by stronger support levels at $1.26869 and $1.26529. A breach below these levels could accelerate bearish momentum, especially if the dollar continues to strengthen.
The Relative Strength Index (RSI) currently stands at 26, indicating an oversold condition and suggesting potential for a technical rebound if support holds. However, the 50-day Exponential Moving Average (EMA) at $1.28799 is notably above the current price, reinforcing the pair’s bearish bias. Traders may interpret this distance from the 50 EMA as a sign of sustained downward pressure unless a significant recovery occurs.
With GBP/USD hovering near oversold territory, a potential buy entry above $1.27201 may provide an opportunity for a short-term rebound, targeting $1.27858. A stop-loss at $1.26811 is advisable to manage risk, given the current bearish sentiment.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.27201
Take Profit – 1.27858
Stop Loss – 1.26811
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$657/ -$390
Profit & Loss Per Mini Lot = +$65/ -$39
GBP/USD Price Analysis – Nov 13, 2024
Daily Price Outlook
During the European trading session, the GBP/USD currency pair extended its downward trend, despite mild declines in the US dollar. Currently, the pair is trading around the 1.2740 level, having dipped to an intraday low of 1.2729.
However, this downward pressure was driven by investor cautious sentiment ahead of the release of the US Consumer Price Index (CPI) data for October, scheduled for 13:30 GMT.
Furthermore, the disappointing UK labor market figures for the three months ending in September showed an unexpected rise in the unemployment rate to 4.3%. Meanwhile, the fresh payrolls were much lower than expected, with only 219K jobs added, compared to the 373K increase in the previous period ending in August. This was seen as another key factor that kept the GBP/USD pair down.
GBP/USD Pressure Mounts Amid Weak UK Labor Market Data and Inflation Concerns
On the data front, the United Kingdom (UK) labor market data for the three months ending in September showed that the unemployment rate rose to 4.3%, higher than expected. This caused the Pound to drop sharply.
Moreover, the number of new jobs added was lower than anticipated, with only 219K compared to 373K in the previous three-month period. Analysts at XTB suggest that the rise in unemployment could lead the market to expect a higher chance of a rate cut by the Bank of England (BoE) next month.
Although the labor market data wasn't all negative for the Pound, average earnings, which reflect wage growth and are important for consumer spending, came in higher than expected. This helped ease some of the concerns. Following the data, Bank of England Chief Economist Huw Pill raised concerns about inflation remaining high.
He noted that pay growth is still strong, which, combined with the UK’s productivity outlook, makes it difficult to meet the BoE’s inflation target. Pill's comments suggest that the central bank remains cautious about inflation, even as other parts of the economy show signs of slowing down.
Therefore, the weak UK labor market data and concerns over inflation led to a decline in the GBP, putting pressure on the GBP/USD pair. The market's expectation of a potential rate cut from the Bank of England further weighed on the Pound.
US Dollar Holds Firm Ahead of CPI Data, Pressuring GBP/USD Pair
On the US front, the broad-based US dollar is losing some momentum but continues to hold onto gains, with the US Dollar Index (DXY) at around 106.00, its highest level in over six months. Investors are focused on the upcoming release of the US Consumer Price Index (CPI) data for October, scheduled for 13:30 GMT.
Economists expect the headline inflation to rise to 2.6% from 2.4% in September, while core CPI, which excludes food and energy prices, is predicted to increase by 3.3%. Monthly, the headline CPI is expected to rise by 0.2%, and core CPI by 0.3%.
Although inflation is expected to show a slight increase, it likely won’t change the market’s view on the Federal Reserve’s (Fed) policy for December unless the numbers are significantly different from expectations. Most Fed officials are confident that inflation is moving towards their 2% target.
However, Minneapolis Fed President Neel Kashkari mentioned that if inflation rises unexpectedly before December, it could cause the Fed to reconsider its approach. The probability of the Fed reducing interest rates in December is now 62%, slightly lower than the 70% probability seen a week ago, according to the CME FedWatch tool.
Therefore, the US dollar’s steady strength, coupled with expectations for slightly higher inflation, is likely to keep pressure on the GBP/USD pair. If the CPI data aligns with expectations, it may reinforce the US dollar's dominance, limiting any potential recovery for the Pound.
GBP/USD – Technical Analysis
The GBP/USD pair is trading at $1.27385, down 0.07% on the day, indicating a slight bearish tilt as the British pound remains under pressure against the U.S. dollar.
The pivot point for GBP/USD is at $1.27823, a critical level for gauging market direction in the near term. A sustained move above this point could signal a bullish shift, though immediate resistance at $1.28321 and further resistance at $1.28694 may limit any substantial recovery.
On the downside, immediate support sits at $1.27201, followed by stronger support levels at $1.26869 and $1.26529. A breach below these levels could accelerate bearish momentum, especially if the dollar continues to strengthen.
The Relative Strength Index (RSI) currently stands at 26, indicating an oversold condition and suggesting potential for a technical rebound if support holds. However, the 50-day Exponential Moving Average (EMA) at $1.28799 is notably above the current price, reinforcing the pair’s bearish bias. Traders may interpret this distance from the 50 EMA as a sign of sustained downward pressure unless a significant recovery occurs.
With GBP/USD hovering near oversold territory, a potential buy entry above $1.27201 may provide an opportunity for a short-term rebound, targeting $1.27858. A stop-loss at $1.26811 is advisable to manage risk, given the current bearish sentiment.
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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
GBP/USD Price Analysis – Nov 11, 2024
Daily Price Outlook
During the European trading session, the GBP/USD currency pair extended its early-day losing streak, remaining under pressure around the 1.2896 level and reaching an intraday low of 1.2888. However, the US dollar bullish rally was a key factor behind this bearish trend, along with uncertainty and cautious sentiment ahead of this week’s UK and US macroeconomic releases, which further weighed on the GBP/USD pair.
However, the Bank of England's hawkish stance provided some support for the GBP, limiting further losses in the GBP/USD pair. Moreover, the risk-on mood capped gains for the safe-haven US dollar, offering some support to GBP/USD. Despite these supportive factors, the strength of the US dollar dominated, putting pressure on the GBP/USD pair.
BoE's Hawkish Stance and Economic Data Awaited as GBP/USD Remains Cautious
On the GBP front, the Bank of England (BoE) has taken a hawkish stance, especially after warning that Chancellor Rachel Reeves’ expansive Autumn Budget could drive inflation higher. This cautious sentiment suggests the BoE may avoid cutting interest rates in 2025.
Meanwhile, the current positive market mood limits gains for the safe-haven US dollar, offering some support to the GBP/USD pair and encouraging caution before placing strong bearish trades.
Investors appear hesitant, likely staying on the sidelines as they await major economic data from both the UK and the US. However, the major UK data this week includes job market figures on Tuesday and preliminary Q3 GDP data on Friday.
Meanwhile, the US is set to release its Consumer Price Index (CPI) on Wednesday, followed by the Producer Price Index (PPI) on Thursday and Retail Sales data on Friday.
Therefore, the combination of the BoE's hawkish stance and key economic data releases from both the UK and the US creates uncertainty, limiting significant movement in the GBP/USD pair. Investors are likely to remain cautious, awaiting clearer direction.
US Dollar's Bullish Momentum Limits GBP/USD Gains Amid Inflation Concerns and Economic Data
On the US front, the broad-based US dollar maintained its bullish momentum, holding near recent highs amid expectations that President-elect Donald Trump’s policies could increase inflation. This anticipated inflation rise may limit the Federal Reserve's ability to cut interest rates aggressively.
Federal Reserve officials, including Minneapolis Fed President Neel Kashkari, highlighted the economy's resilience, noting that more evidence is needed to confirm inflation’s return to the 2% target.
Although some suggest Trump’s fiscal policies could lead to more spending and labor demand, potentially strengthening the dollar, Fed Chair Jerome Powell emphasized that the Fed will remain data-driven and not speculate on future policy changes.
Meanwhile, economic data continues to show a solid US economy. On the data front, the preliminary University of Michigan Consumer Sentiment Index rose to 73.0 in November, signaling consumer optimism, while weekly jobless claims slightly increased but stayed close to expectations.
Therefore, the US dollar's strength, driven by expectations of rising inflation and limited rate cuts, is putting downward pressure on the GBP/USD pair. Despite the Bank of England's hawkish stance, the USD's bullish trend limits any significant gains for GBP/USD.
GBP/USD – Technical Analysis
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
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GBP/USD Price Analysis – Nov 06, 2024
Daily Price Outlook
During Asian trading hours on Wednesday, the GBP/USD pair continued its downward trend, turning bearish at the 1.2889 level and reaching an intra-day low of 1.2846. This depreciation was mainly driven by a surge in the US Dollar after Donald Trump claimed victory in the 2024 presidential election, with Republicans poised to take control of both the Senate and the House.
On the GBP front, the Bank of England’s upcoming rate decision, scheduled for Thursday, is expected to result in a quarter-point reduction. The BoE’s Monetary Policy Committee is likely to vote 7-2 in favor of lowering the main reference rate to 4.75% from the current 5.0%. As a result, the anticipated rate cut is expected to weigh on the GBP, as lower interest rates generally reduce the currency’s appeal to investors.
Trump’s Victory and Fed Rate Cut Expectations Drive Bearish Momentum in GBP/USD
On the US front, the broad-based US dollar sustained its upward trend and gained further momentum after Donald Trump claimed victory in the 2024 presidential election. Although the election is not officially decided yet, Trump declared himself the winner, stating that his victory gives him a strong mandate to push forward his economic policies.
Trump won key battleground states like North Carolina, Georgia, and Pennsylvania, and Fox News has already called him the winner over Democrat Kamala Harris.
Alongside Trump's win, the Republican Party is also set to take control of the Senate and is likely to win the House of Representatives.
This Republican sweep in Congress will make it easier for Trump to implement his policies, which are expected to be more inflationary, especially given his protectionist stance on trade and immigration.
The US dollar and Treasury yields surged on the news of Trump’s victory, with the greenback reaching a near four-month high.
However, the quick conclusion to the election also reduces uncertainty in the stock market, which had faced turmoil following the 2020 election.
Meanwhile, traders are awaiting the Federal Reserve’s decision on interest rates, with strong expectations for a 25 basis point cut on Thursday.
Therefore, the US dollar's strength, driven by Trump's victory and Republican control, likely pressures the GBP/USD pair, as the greenback gains momentum. Additionally, expectations of a Fed rate cut add further downward pressure on the GBP, amplifying the pair’s bearish trend.
GBP/USD – Technical Analysis
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.
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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