Daily Price Outlook

    On October 04, the GBP/USD trading trajectory has taken an intriguing turn. Presently, this currency pair is floating around the 1.20551 pivot point, reflecting the complexities and nuances of the international currency market. The significant technical levels to monitor in the short term include immediate resistance at 1.21071, followed by 1.21398 and 1.21878. Conversely, the asset has marked its immediate support level at 1.20041, with additional cushions positioned at 1.19537 and 1.18987.

    When observing the technical indicators, the Relative Strength Index (RSI) for the GBP/USD is currently at 33, hinting at a bearish sentiment. Traditionally, an RSI below 50 leans toward bearish momentum, and the GBP/USD's current positioning suggests it is verging on the oversold region. This sentiment is mirrored in the 50-Day Exponential Moving Average (50 EMA), which stands at 1.218. Given that the pair's price is beneath this level, there's an implied short-term bearish undertone.

    From the perspective of chart patterns, the GBP/USD's movement is showing signs reminiscent of a Fibonacci retracement. The pair appears poised to bounce off the 1.2050 region, potentially aiming for the 23.6% Fibonacci retracement level at 1.2100 or the 38.2% level at 1.2137. This suggests that the GBP/USD might undergo a short-term bullish correction.

    In conclusion, despite the overarching bearish sentiment for the GBP/USD pair, there seems to be potential for a bullish correction, particularly if the price sustains above the 1.2050 level. Traders might consider initiating buy orders above this threshold and explore selling options should this level be breached. As always, it's crucial to remain vigilant of any emerging fundamental news that could recalibrate the market landscape.

    GBP/USD Price Chart – Source: Tradingview
    GBP/USD Price Chart – Source: Tradingview

    GBP/USD - Trade Idea

    Entry Price – Buy Above 1.20535

    Take Profit – 1.21377

    Stop Loss – 1.19960

    Risk to Reward – 1: 1.45

    Profit & Loss Per Standard Lot = +$842/ -$575

    Profit & Loss Per Micro Lot = +$84/ -$57



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