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

Daily Price Outlook

- Pivot Level: Bearish sentiment persists below $1.21993; recovery faces resistance at $1.23209.

- Support Levels: Key supports at $1.20880, $1.20174, and $1.19346 suggest further downside risk.

- Indicators: 50 EMA at $1.24042 confirms downward trend; RSI indicates potential consolidation.

The GBP/USD pair is trading at $1.21306, down 0.53% on the day, reflecting continued selling pressure amid a stronger U.S. dollar.

The 4-hour chart indicates that $1.21993, the pivot point, serves as a critical barrier for any potential recovery. Below this level, immediate support is located at $1.20880, with subsequent targets at $1.20174 and $1.19346.

On the upside, resistance levels are positioned at $1.23209, $1.24064, and $1.24962. The 50-day EMA at $1.24042 underscores a bearish outlook, with prices consistently trading below this trend indicator.

The RSI suggests a continuation of bearish momentum, though it approaches oversold territory, hinting at a possible consolidation phase.

The preferred strategy is to enter short positions below $1.22011, with a target of $1.20898 and a stop-loss set at $1.22710.

A sustained breach of the immediate support at $1.20880 could accelerate selling pressure, while a rebound above the pivot point might provide an opportunity for bulls to retest resistance levels. Traders should monitor the pair closely for volatility near these key levels.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.22011

Take Profit – 1.20898

Stop Loss – 1.22710

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$1113/ -$699

Profit & Loss Per Mini Lot = +$111/ -$69