Daily Price Outlook

    The GBP/USD pair is navigating through a delicate phase, with a modest pullback of 0.15%, marking the spot rate at 1.22807 as of November 8. Our technical analysis, anchored in the 4-hour chart, suggests a landscape that remains finely balanced.

    The pair is currently teetering around the pivot point of 1.2290. A trio of resistance levels looms above, starting at 1.2481, ascending to 1.2588, and peaking at 1.2778, which could serve as formidable barriers to upward movements. On the flip side, a hierarchy of support establishes itself at 1.2183, with further cushions at 1.1987 and 1.1886 potentially arresting any declines.

    A neutral RSI reading of 50 offers no clear directional bias, signifying a market in equilibrium. Meanwhile, the MACD indicator exhibits a marginal bearish crossover, which might suggest an onset of downward pressure. However, the price's current standing above the 50 EMA at 1.2244 injects a hint of bullishness into the short-term outlook.

    The technical chart unveils no definitive patterns at this juncture, leaving the door open for various interpretations and strategies. Nevertheless, a sustained trading above the 50 EMA could tilt the scales in favor of the bulls, potentially initiating a march towards the noted resistance levels.

    In summary, the GBP/USD's technical posture is one of cautious optimism, with a bullish bias taking hold above the 1.2244 level. Should this optimism hold, the pair may embark on an ascent to test the immediate resistance in the near term.

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

    GBP/USD - Trade Idea 

    Entry Price – Buy Above 1.22412

    Take Profit – 1.23410

    Stop Loss – 1.21729

    Risk to Reward – 1: 1.4

    Profit & Loss Per Standard Lot = +$998/ -$683

    Profit & Loss Per Mini Lot = +$99/ -$68



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