GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- GBP/USD bearish sentiment with RSI at 39.68, suggesting potential downside if pivot point breaks.

- Immediate resistance levels at $1.27457, $1.27645, and $1.28075 must be breached for bullish momentum.

- Sell entry below $1.27100 with a target of $1.26445 and stop loss at $1.27457.

GBP/USD is currently trading at $1.26825, showing bearish momentum on the 4-hour chart. The pivot point at $1.27100 is a crucial level for determining the next move. Immediate resistance is seen at $1.27457, with subsequent resistance levels at $1.27645 and $1.28075. To confirm a bullish reversal, these resistance levels need to be breached. On the downside, immediate support is found at $1.26572, with further support levels at $1.26445 and $1.26132. The Relative Strength Index (RSI) is at 39.68, indicating bearish sentiment but not yet in oversold territory.

The 50-day Exponential Moving Average (EMA) at $1.27412 is currently acting as a resistance level. The price needs to break above this EMA to signal a potential shift to bullish momentum. The current price action suggests that a break above the immediate resistance could signal a bullish move, while a drop below the pivot point of $1.27100 may lead to further downside pressure. Monitoring these key levels and EMA crossovers will be essential for short-term trading strategies.

The 200-day EMA at $1.27412 also serves as a significant resistance point that the price needs to surpass to confirm a stronger bullish trend. Considering the current technical outlook, a sell position below $1.27100 is advisable with a take profit target at $1.26445 and a stop loss at $1.27457.

GBP/USD- Trade Ideas

Entry Price – Sell Below 1.27100

Take Profit – 1.26445

Stop Loss – 1.27457

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$ 655/ -$ 357

Profit & Loss Per Mini Lot = +$ 65/ -$ 35