GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Immediate Support: GBP/USD finds key support at $1.3149, with the 50-day EMA at $1.3086 providing additional backing.
- Resistance Levels: A break above $1.3265 could lead to gains toward $1.3299 and $1.3333.
- Technical Indicators: RSI at 63 suggests a bullish market, but the pair is nearing overbought conditions.
The British Pound (GBP/USD) is currently trading at $1.32197, down 0.11% as the pair consolidates within a tight range on the 4-hour chart.
The pair is exhibiting some signs of resilience despite the modest pullback, with the price hovering near the immediate support level at $1.3149.
This level has proven to be a key short-term support and could be crucial in determining the next directional move.
On the upside, immediate resistance is seen at $1.3265, closely aligned with the pivot point at $1.3263. A break above this resistance could open the door for further gains towards the next resistance levels at $1.3299 and $1.3333.
These levels have acted as barriers in recent sessions, and overcoming them could signify a stronger bullish trend.
The Relative Strength Index (RSI) stands at 63, indicating that the market is still in a bullish phase but approaching overbought territory.
This suggests that while there is room for further upside, traders should be cautious of a potential pullback.
The 50-day Exponential Moving Average (EMA) at $1.3086 is currently providing strong support, reinforcing the overall uptrend.
Given the current setup, a buy limit order at $1.31920 could offer a favorable risk-reward ratio. The target would be the pivot point at $1.3263, with a stop loss at $1.31578 to protect against downside risks.
GBP/USD - Trade Ideas
Entry Price – Buy Limit 1.31920
Take Profit – 1.32630
Stop Loss – 1.31578
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$710/ -$342
Profit & Loss Per Mini Lot = +$71/ -$34
GBP/USD Price Analysis – Aug 28, 2024
Daily Price Outlook
Despite expectations that the Bank of England (BoE) will cut interest rates more slowly than other central banks, the GBP/USD currency pair continued its losing streak, trading around 1.3218 and hitting an intra-day low of 1.3214.
This decline is largely due to the US Dollar recovering some ground, with investors focusing on the upcoming US core Personal Consumption Expenditure (PCE) Price Index data for July, scheduled for release on Friday.
Although the US Dollar has recently gained, its near-term outlook remains bearish as investors anticipate the Federal Reserve will reduce interest rates in its September meeting.
Conversely, the GBP/USD pair might trade sideways as investors await more clarity on the Bank of England’s future rate decisions.
The recent 25 basis points rate cut to 5% indicates a shift from a restrictive policy stance, reflecting confidence in achieving the 2% inflation target.
Impact of US Economic Data and Federal Reserve Expectations on GBP/USD
On the US front, the GBP/USD pair has fallen as the US Dollar regains strength. Investors are awaiting the core Personal Consumption Expenditure (PCE) data for July, due for release on Friday, which could have a notable impact on the pair.
The US Dollar Index (DXY) has attracted buying interest after reaching a new year-to-date low of 100.50.
Despite this recovery, the short-term outlook for the US Dollar remains uncertain as investors are anticipating a Federal Reserve rate cut in September, but opinions differ on the magnitude.
However, the CME FedWatch tool indicates a 34.5% chance of a 50-basis point cut, while most expect a 25-basis point reduction.
Economists forecast a slight increase in core PCE inflation to 2.7%, which could impact the Fed's decision and influence market speculation regarding future rate cuts.
Impact of BoE's Rate Decisions and Economic Outlook on GBP/USD
On the BoE front, the Pound Sterling is showing mixed performance against major currencies as investors await new information about interest rates.
The BoE recently cut rates by 25 basis points to 5%, ending a long period of high rates, and is confident it can bring inflation down to its 2% target.
The expectation is that the BoE will reduce rates more slowly than other central banks because the UK economy remains strong, supported by recent positive economic data.
Investors are looking for more guidance from BoE policymaker Catherine Mann’s upcoming speech at 12:15 GMT.
Mann had previously voted to keep rates steady at 5.25%, and her comments may provide insights into future rate cuts and inflation expectations.
Additionally, UK Prime Minister Keir Starmer’s remarks about a tighter fiscal budget, aiming for long-term benefits despite short-term tax increases, have bolstered the Pound’s appeal.
Therefore, the mixed performance of the GBP/USD pair reflects uncertainty as investors await further guidance on interest rates.
The BoE’s slower rate cuts and positive economic data may support the Pound, while upcoming comments from BoE policymaker Mann and fiscal budget details will also influence GBP/USD.
GBP/USD - Technical Analysis
The British Pound (GBP/USD) is currently trading at $1.32197, down 0.11% as the pair consolidates within a tight range on the 4-hour chart.
The pair is exhibiting some signs of resilience despite the modest pullback, with the price hovering near the immediate support level at $1.3149.
This level has proven to be a key short-term support and could be crucial in determining the next directional move.
On the upside, immediate resistance is seen at $1.3265, closely aligned with the pivot point at $1.3263. A break above this resistance could open the door for further gains towards the next resistance levels at $1.3299 and $1.3333.
These levels have acted as barriers in recent sessions, and overcoming them could signify a stronger bullish trend.
The Relative Strength Index (RSI) stands at 63, indicating that the market is still in a bullish phase but approaching overbought territory.
This suggests that while there is room for further upside, traders should be cautious of a potential pullback.
The 50-day Exponential Moving Average (EMA) at $1.3086 is currently providing strong support, reinforcing the overall uptrend.
Given the current setup, a buy limit order at $1.31920 could offer a favorable risk-reward ratio. The target would be the pivot point at $1.3263, with a stop loss at $1.31578 to protect against downside risks.
Related News
GOLD Price Analysis – Aug 28, 2024
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Key Resistance: Immediate resistance is at $1.3255, followed by $1.3299.
- Pivot Point: $1.3220 is the critical level for potential price direction.
- Immediate Support: $1.3165 could see increased selling pressure if breached.
The British Pound (GBP) is currently trading at $1.31995 against the US Dollar (USD), reflecting a slight decline of 0.14% in today’s session.
On the 4-hour chart, GBP/USD is flirting with the critical pivot point at $1.3220, which has been a key level of interest for traders.
The currency pair’s recent price action suggests that the market is at a crossroads, with potential for both upward and downward movement depending on how it interacts with this pivot.
The Relative Strength Index (RSI) is hovering around 73, indicating that the pair is nearing overbought territory.
This elevated RSI suggests that the upward momentum may be losing steam, making it increasingly likely that we could see a pullback.
However, as long as GBP/USD stays above the 50-day Exponential Moving Average (EMA), currently positioned at $1.3092, the broader uptrend remains intact.
Resistance levels to watch include $1.3255 as the immediate barrier, followed by $1.3299 and $1.3340.
A break above these levels could reinvigorate the bullish trend, pushing the pair toward new highs. On the downside, immediate support is found at $1.3165, with further support at $1.3121 and $1.3078.
A breach of $1.3165 could trigger a more pronounced sell-off, potentially bringing the pair back down to test the lower support levels.
Conclusion: The market remains cautiously optimistic but is showing signs of overextension.
Traders might consider selling below the $1.3220 pivot point, aiming for a take profit around $1.3165 and setting a stop loss near $1.3255. Keep an eye on the RSI and the 50 EMA for any shifts in momentum.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.32206
Take Profit – 1.31626
Stop Loss – 1.32547
Risk to Reward – 1: 1.7
Profit & Loss Per Standard Lot = +$580/ -$341
Profit & Loss Per Mini Lot = +$58/ -$34
GBP/USD Price Analysis – Aug 26, 2024
Daily Price Outlook
During the European trading session, the GBP/USD currency pair maintained its upward trend and remained well bid around the 1.3225 level.
This bullish momentum is primarily driven by dovish comments from Federal Reserve (Fed) Chair Jerome Powell regarding interest rates. These remarks undermine the US dollar and contribute to the GBP/USD pair’s gains.
Powell's comments at the Jackson Hole Symposium suggest that the Fed is considering rate cuts, reflecting concerns over the US labor market's downside risks.
Fed Rate Cut Expectations and Economic Data Impact on GBP/USD
Jerome Powell, the Fed Chair, hinted that the central bank might cut interest rates to support the labor market and keep inflation around 2%.
However, he didn’t specify when these cuts might occur, stating that the decision will depend on future economic data.
This lack of clear guidance has weakened the US dollar. As a result, the Pound Sterling (GBP) has strengthened against the US Dollar (USD), pushing the GBP/USD exchange rate higher.
In simple terms, the uncertainty about the Fed’s next moves has made the USD less valuable, benefiting the GBP.
On the US front, the US Dollar Index (DXY), which measures the USD against six major currencies, recently hit a new year-to-date low of 100.53.
Investors are awaiting crucial economic data this week, including the July core Personal Consumption Expenditure (PCE) Price Index and Durable Goods Orders.
These releases will be pivotal in shaping expectations for Fed policy and, consequently, influencing the GBP/USD movement.
Bank of England’s Cautious Approach Bolsters Pound Amid Rate Cut Speculation
On the BoE front, the Pound Sterling is performing well against its major peers at the start of the week.
The British currency is gaining strength because the Bank of England (BoE) is cautious about planning rate cuts too soon, given that inflation in the UK is still a concern.
BoE Governor Andrew Bailey indicated at the Jackson Hole Symposium that while inflation pressures may be less severe than expected, the BoE should not rush to cut interest rates. He emphasized the need to be careful not to lower rates too quickly or too much.
This week, market speculation about future BoE rate cuts will guide the Pound Sterling, as there is no major economic data expected from the UK.
Currently, traders anticipate one more rate cut from the BoE this year. Although the BoE did cut rates on August 1, recent positive economic data, like the stronger-than-expected flash S&P Global/CIPS PMI for August, has lessened the likelihood of another rate cut in September.
GBP/USD - Technical Analysis
The British Pound (GBP) is currently trading at $1.31995 against the US Dollar (USD), reflecting a slight decline of 0.14% in today’s session.
On the 4-hour chart, GBP/USD is flirting with the critical pivot point at $1.3220, which has been a key level of interest for traders.
The currency pair’s recent price action suggests that the market is at a crossroads, with potential for both upward and downward movement depending on how it interacts with this pivot.
The Relative Strength Index (RSI) is hovering around 73, indicating that the pair is nearing overbought territory.
This elevated RSI suggests that the upward momentum may be losing steam, making it increasingly likely that we could see a pullback.
However, as long as GBP/USD stays above the 50-day Exponential Moving Average (EMA), currently positioned at $1.3092, the broader uptrend remains intact.
Resistance levels to watch include $1.3255 as the immediate barrier, followed by $1.3299 and $1.3340. A break above these levels could reinvigorate the bullish trend, pushing the pair toward new highs.
On the downside, immediate support is found at $1.3165, with further support at $1.3121 and $1.3078.
A breach of $1.3165 could trigger a more pronounced sell-off, potentially bringing the pair back down to test the lower support levels.
Conclusion: The market remains cautiously optimistic but is showing signs of overextension.
Traders might consider selling below the $1.3220 pivot point, aiming for a take profit around $1.3165 and setting a stop loss near $1.3255. Keep an eye on the RSI and the 50 EMA for any shifts in momentum.
Related News
GOLD Price Analysis – Aug 26, 2024
GBP/USD Price Analysis – Aug 21, 2024
Daily Price Outlook
Despite upbeat PMI data, the GBP/USD currency pair has managed to stay above the key 1.3000 level, reaching new highs near 1.3050.
This strength is attributed to growing expectations that the Federal Reserve (Fed) may cut interest rates in September.
However, the pair's upward momentum is tempered by concerns about UK wage growth and potential impacts of monetary policy changes.
US Dollar Weakens Amid Fed Rate-Cut Speculation and Upcoming FOMC Minutes
On the US front, the broad-based US dollar has found temporary support around 101.30, following its recent decline.
This weakness is largely due to market speculation that the Fed will initiate rate cuts in September.
Investors are eagerly awaiting the Federal Open Market Committee (FOMC) minutes from the July meeting, set for release at 18:00 GMT, to gain further insights into the Fed's policy direction.
The Fed had maintained its key rates at 5.25%-5.50% but highlighted economic uncertainties that could influence future decisions.
It should be noted that the CME Group's FedWatch Tool shows a 70% chance of a rate cut, with a Reuters poll suggesting the Fed might reduce rates by 25 basis points at each of the remaining three meetings in 2024. However, Fed Governor Michelle Bowman cautions that inflation remains above the 2% target.
Mixed Economic Signals in the UK Raise Questions on BoE Rate Cuts
On the UK side, recent economic data shows mixed signals. UK wage growth has declined to 4.5% in the three months ending July, down from the previous 5%.
This decrease reflects lower inflation pressures, adding to speculation that the Bank of England (BoE) may cut rates in September.
Additionally, the UK's Consumer Price Index (CPI) report for July revealed a core inflation rate of 3.3%, and service sector inflation fell to 5.2%.
Despite these factors, the BoE remains cautious about rate cuts due to persistent inflation in the service sector.
The upcoming S&P Global Purchasing Managers' Index (PMI) data for August, scheduled for release on Thursday, is expected to show a steady Manufacturing PMI at 52.1 and an improved Services PMI at 52.8.
Therefore, the mixed economic signals from the UK, including declining wage growth and inflation, create uncertainty for the GBP/USD pair.
While speculation about BoE rate cuts might support the pound, persistent inflation concerns could limit gains and keep the pair volatile.
GBP/USD - Technical Analysis
GBP/USD is currently trading at $1.30261, down by 0.03% as the pair hovers around its immediate support levels.
The 4-hour chart indicates that the pivot point is set at $1.3040, which is critical for determining the next direction. Immediate resistance is at $1.3097, followed by $1.3133 and $1.3174.
On the downside, the immediate support lies at $1.2978, with additional support at $1.2933 and $1.2887.
The Relative Strength Index (RSI) is currently at 75, suggesting that GBP/USD is in overbought territory, which might trigger a pullback.
Meanwhile, the 50-day Exponential Moving Average (EMA) is at $1.2872, reinforcing the bearish outlook if the pair fails to break above its pivot point.
Given the overbought RSI and the resistance levels ahead, there’s a good chance we could see some selling pressure emerge.
If the pair fails to maintain its position above $1.3040, a bearish correction might ensue, driving the price towards the next support levels.
Conclusion: Selling below $1.30398 could be a strategic move, with a target profit at $1.29802 and a stop loss at $1.30911.
Related News
EUR/USD Price Analysis – Aug 21, 2024
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Immediate Resistance: $1.3097; next at $1.3133 and $1.3174.
- Immediate Support: $1.2978; further at $1.2933 and $1.2887.
- RSI at 75: Overbought conditions suggest potential for a bearish pullback
GBP/USD is currently trading at $1.30261, down by 0.03% as the pair hovers around its immediate support levels.
The 4-hour chart indicates that the pivot point is set at $1.3040, which is critical for determining the next direction. Immediate resistance is at $1.3097, followed by $1.3133 and $1.3174.
On the downside, the immediate support lies at $1.2978, with additional support at $1.2933 and $1.2887.
The Relative Strength Index (RSI) is currently at 75, suggesting that GBP/USD is in overbought territory, which might trigger a pullback.
Meanwhile, the 50-day Exponential Moving Average (EMA) is at $1.2872, reinforcing the bearish outlook if the pair fails to break above its pivot point.
Given the overbought RSI and the resistance levels ahead, there’s a good chance we could see some selling pressure emerge.
If the pair fails to maintain its position above $1.3040, a bearish correction might ensue, driving the price towards the next support levels.
Conclusion: Selling below $1.30398 could be a strategic move, with a target profit at $1.29802 and a stop loss at $1.30911.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.30398
Take Profit – 1.29802
Stop Loss – 1.30911
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$596/ -$513
Profit & Loss Per Mini Lot = +$59/ -$51
GBP/USD Price Analysis – Aug 19, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair maintained its upward rally and surged to its year-to-date (YTD) highs, hovering around 1.1040.
This rise was fueled by a weakening US Dollar (USD) amid increasing expectations of a Federal Reserve rate cut in September.
Market participants are closely watching Fed Chair Jerome Powell's upcoming speech on Friday for additional insights into the potential interest rate cuts.
The dovish remarks from Fed officials have exerted selling pressure on the USD, further supporting the EUR/USD pair's upward momentum.
EUR/USD Gains Amidst Fed Rate Cut Speculations and ECB Policy Outlook
On the US front, the broad-based US dollar continues to face pressure as traders increasingly bet on a rate cut at the next Fed meeting.
San Francisco Fed President Mary Daly's recent comments highlighted her confidence that inflation is under control, suggesting it might be time to consider adjusting borrowing costs.
Meanwhile, Chicago Fed President Austan Goolsbee echoed similar sentiments, cautioning against maintaining restrictive policies longer than necessary.
These dovish signals have led investors to price in a 70% probability of a quarter-point rate cut in September, with some even expecting a half-point reduction. This environment has created a supportive backdrop for the EUR/USD pair.
Impact of ECB Rate Path Expectations on EUR/USD
Across the Atlantic, the Euro (EUR) is gaining ground as the European Central Bank (ECB) is expected to reduce interest rates gradually. ECB President Christine Lagarde emphasized the bank's data-dependent approach, indicating that policymakers are not committed to a specific rate path.
This cautious stance by the ECB, coupled with the weakening USD, is contributing to the EUR/USD pair's strength. Investors will continue to monitor developments in the Eurozone and any updates from ECB officials that could influence the pair's trend.
GBP/USD - Technical Analysis
GBP/USD is currently trading at $1.29542, reflecting a modest increase of 0.07%. The pair is trading just below its pivot point of $1.2997, which is a crucial level to watch.
The Relative Strength Index (RSI) is at 78, indicating that the pair is in overbought territory, which could suggest that a short-term pullback might be on the horizon.
However, the overall trend remains bullish, supported by the 50-day Exponential Moving Average (EMA) at $1.2800.
Immediate resistance is found at $1.2978, followed by more substantial resistance levels at $1.3034 and $1.3082.
On the downside, the first level of support is at $1.2886, with further support at $1.2846 and $1.2803. If GBP/USD can break above the pivot point, it may trigger further gains towards the higher resistance levels.
For those looking to trade this pair, a buy entry above $1.29351 with a take profit target at $1.29965 could be a strategic move.
A stop loss at $1.28938 would help manage risk in case of an unexpected downturn.
Related News
GOLD Price Analysis – Aug 19, 2024
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Buy Entry: Above $1.29351 for a target of $1.29965.
- Immediate Resistance: At $1.2978; a break could signal further gains.
- Support Levels: Watch $1.2886 and $1.2846 for potential pullbacks.
GBP/USD is currently trading at $1.29542, reflecting a modest increase of 0.07%. The pair is trading just below its pivot point of $1.2997, which is a crucial level to watch.
The Relative Strength Index (RSI) is at 78, indicating that the pair is in overbought territory, which could suggest that a short-term pullback might be on the horizon.
However, the overall trend remains bullish, supported by the 50-day Exponential Moving Average (EMA) at $1.2800.
Immediate resistance is found at $1.2978, followed by more substantial resistance levels at $1.3034 and $1.3082.
On the downside, the first level of support is at $1.2886, with further support at $1.2846 and $1.2803. If GBP/USD can break above the pivot point, it may trigger further gains towards the higher resistance levels.
For those looking to trade this pair, a buy entry above $1.29351 with a take profit target at $1.29965 could be a strategic move.
A stop loss at $1.28938 would help manage risk in case of an unexpected downturn.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.29351
Take Profit – 1.29965
Stop Loss – 1.28938
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$614/ -$413
Profit & Loss Per Mini Lot = +$61/ -$41
GBP/USD Price Analysis – Aug 14, 2024
Daily Price Outlook
During Wednesday's European trading session, the GBP/USD currency pair faced significant volatility, initially dropping to an intraday low of 1.2815 before recovering to near 1.2840 as the US Dollar weakened ahead of crucial US inflation data.
The GBP's recovery was driven by market anticipation of softer US CPI figures for July, which could influence the Federal Reserve's monetary policy decisions.
Despite the intraday recovery, the GBP remains under pressure due to easing inflation in the UK, which has increased the likelihood of future rate cuts by the Bank of England (BoE).
GBP/USD Volatility Expected Amidst BoE Rate Cut Speculations and Inflation Concerns
The Pound Sterling struggled against most major currencies during Wednesday’s London session after the UK’s Consumer Price Index (CPI) report for July came in softer than expected.
The annual headline CPI rose by 2.2%, below the forecasted 2.3%, and core inflation decelerated to 3.3%, compared to 3.4% expected. These figures have heightened market expectations for the BoE to initiate sequential interest-rate cuts, further pressuring the GBP.
Despite the softer inflation data, BoE MPC member Catherine Mann has expressed concerns about persistent inflation, particularly driven by the service sector, which has seen slower wage growth.
The recent UK Employment report showed a decline in wage growth, with Average Earnings Excluding Bonuses rising at a slower pace of 5.4%, the lowest in two years. This decline in wage growth is expected to ease some of the inflationary pressures in the UK economy, potentially supporting the BoE's case for more dovish monetary policy.
As a result, the GBP/USD pair is likely to remain volatile, with investors closely monitoring further UK economic data and BoE commentary for clues on future rate cuts.
Impact of Federal Reserve Rate Cut Expectations and CPI Data on GBP/USD
On the US front, the GBP/USD pair is heavily influenced by growing speculation of a Federal Reserve rate cut in September.
The latest US Producer Price Index (PPI) report for July showed softer-than-expected inflation, reinforcing expectations that the Fed might need to ease its monetary policy.
According to the CME FedWatch Tool, traders now see a 54.5% chance of a 50 basis point rate cut in September, a slight increase following the PPI data release.
The upcoming US Consumer Price Index (CPI) data for July is expected to show a slight deceleration in both headline and core inflation, with annual rates projected at 2.9% and 3.2%, respectively. If the CPI data confirms this slowdown, it could further weaken the US Dollar, supporting the GBP/USD pair's recovery.
However, if the CPI figures come in higher than expected, it could dampen market expectations for aggressive Fed rate cuts, potentially strengthening the US Dollar and applying renewed pressure on the GBP/USD pair.
Traders will be closely watching the CPI release at 12:30 GMT, as it will significantly influence the near-term direction of the GBP/USD pair.
GBP/USD - Technical Analysis
GBP/USD is currently trading at $1.28398, down 0.06% as it edges closer to key support levels. The currency pair is slightly below its pivot point of $1.2873, which is a critical level to monitor.
The daily chart shows that GBP/USD is in a delicate position, balancing between potential further losses and a possible recovery.
Immediate support is found at $1.2803, with subsequent supports at $1.2756 and $1.2701. If the pair breaks below these levels, it could signal a bearish continuation, potentially driving the price lower.
On the upside, resistance lies at $1.2934, followed by $1.2978 and $1.3030. A move above the pivot point at $1.2873 could shift momentum back in favor of the bulls, setting the stage for a test of these resistance levels.
The RSI is at 65, indicating that the pair is nearing overbought territory but still has some room to climb if buying pressure increases.
The 50-day Exponential Moving Average (EMA) at $1.2757 is providing solid support and aligning with the overall uptrend seen in recent sessions.
For traders considering a short position, an entry below $1.28551 could be strategic, with a take profit target at $1.27910. A stop-loss at $1.29034 would help manage risk if the pair unexpectedly moves higher.
The current technical setup suggests that GBP/USD could experience further downside pressure, but a break above the pivot could quickly change the outlook.
Related News
- GOLD Price Analysis – Aug 14, 2024
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Point Crucial: GBP/USD at $1.2873; breaking below could confirm a bearish trend, above signals potential recovery.
- Support Levels: Immediate support at $1.2803; a break here may lead to further downside towards $1.2756.
- RSI Near Overbought: RSI at 65 suggests limited upside; a potential pullback could occur if resistance holds.
GBP/USD is currently trading at $1.28398, down 0.06% as it edges closer to key support levels. The currency pair is slightly below its pivot point of $1.2873, which is a critical level to monitor.
The daily chart shows that GBP/USD is in a delicate position, balancing between potential further losses and a possible recovery.
Immediate support is found at $1.2803, with subsequent supports at $1.2756 and $1.2701. If the pair breaks below these levels, it could signal a bearish continuation, potentially driving the price lower.
On the upside, resistance lies at $1.2934, followed by $1.2978 and $1.3030. A move above the pivot point at $1.2873 could shift momentum back in favor of the bulls, setting the stage for a test of these resistance levels.
The RSI is at 65, indicating that the pair is nearing overbought territory but still has some room to climb if buying pressure increases.
The 50-day Exponential Moving Average (EMA) at $1.2757 is providing solid support and aligning with the overall uptrend seen in recent sessions.
For traders considering a short position, an entry below $1.28551 could be strategic, with a take profit target at $1.27910. A stop-loss at $1.29034 would help manage risk if the pair unexpectedly moves higher.
The current technical setup suggests that GBP/USD could experience further downside pressure, but a break above the pivot could quickly change the outlook.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.28551
Take Profit – 1.27910
Stop Loss – 1.29034
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$641/ -$483
Profit & Loss Per Mini Lot = +$64/ -$48