Daily Price Outlook

    As we embark upon a new trading week, the focus shifts to the British Pound (GBP) against the US Dollar (USD), a pair that continues to captivate investors' attention in the currency market.

    Currently, the GBP/USD pair is trading at 1.2372, registering a marginal 24-hour decline of 0.03%. The technical landscape, as depicted on the 4-hour chart, presents a vivid picture of the currency pair's struggle between bulls and bears.

    At the core of our technical analysis are the pivot points, which stand as crucial markers for potential shifts in the market trajectory. The pivot point is placed at 1.2287, with the currency pair experiencing immediate resistance at 1.2483. Should the bulls muster enough strength, subsequent resistance levels are observed at 1.2585 and 1.2785. Conversely, immediate support is found at 1.2185, followed by stronger floors at 1.1985 and 1.1879.

    Diving deeper into the technical indicators, the Relative Strength Index (RSI) stands at 73, signaling overbought conditions and suggesting a potential pullback or consolidation in the near term. Furthermore, the 50-Day Exponential Moving Average (EMA) at 1.22 provides additional context; the price positioning above the 50 EMA points to a short-term bullish trend, lending credence to the current upward momentum.

    A closer examination of the chart reveals a notable pattern—an upward channel formation. This pattern typically indicates a bullish sentiment, which is further reinforced by the recent price action breaking above the upper boundary of the channel.

    In conclusion, while the GBP/USD pair exhibits a bullish stance, especially above the 1.2340 mark, the overbought RSI reading warrants caution. Should the bullish momentum persist, the pair is likely to test the immediate resistance at 1.2483 in the coming days. However, traders should remain vigilant for signs of a potential reversal or consolidation, given the current overbought conditions.

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

    GBP/USD - Trade Idea 

    Entry Price – Buy Above 1.23400

    Take Profit – 1.24286

    Stop Loss – 1.22932

    Risk to Reward – 1: 1.8

    Profit & Loss Per Standard Lot = +$886/ -$468

    Profit & Loss Per Mini Lot = +$88/ -$46



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