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

Daily Price Outlook

- Bearish Bias: GBP/USD faces resistance at $1.22439, aligning with the descending trendline and the 50-day SMA.

- Support Levels: Key supports are $1.21019 and $1.20194, critical for gauging potential declines.

- Risk-Reward Setup: Selling below $1.22439 offers a 1:1.9 risk-to-reward ratio, targeting $1,420 per standard lot profit.

GBP/USD is trading at $1.22109, up 0.10%, as the pair consolidates below a critical resistance zone.

The key pivot point at $1.22439 marks a significant level for market direction. A failure to break above this level could invite further selling pressure, aligning with the broader downtrend.

Immediate resistance lies at $1.22439, with additional hurdles at $1.23155 and $1.23335. Conversely, a decisive break below the support level of $1.21019 may trigger sharper declines, with subsequent support levels at $1.20194 and $1.19346.

The bearish bias is supported by the descending trendline and the 50-day SMA at $1.23335, which caps upside potential.

The risk-to-reward setup favors selling below $1.22439, with a target of $1.21019 and a stop loss at $1.23155.

This trade setup offers a potential profit of $1,420 per standard lot against a risk of $716, with a favorable risk-to-reward ratio of 1:1.9.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.22439

Take Profit – 1.21019

Stop Loss – 1.23155

Risk to Reward – 1: 1.9

Profit & Loss Per Standard Lot = +$1420/ -$716

Profit & Loss Per Mini Lot = +$142/ -$71