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

Daily Price Outlook

- GBP/USD faces immediate resistance at $1.23125, with further upside barriers at $1.24064 and $1.24962, while key support levels are positioned at $1.21034, $1.20174, and $1.19346.

- The pair is hovering slightly below the 50-day EMA at $1.22441, indicating potential bearish momentum if downward pressure persists.

- A sell strategy below $1.22465, targeting $1.21019, with a stop-loss at $1.23155, could offer a favorable trade setup in the near term.

GBP/USD is trading at $1.22141, up 0.44%, as the pair edges higher in early trading amid cautious market sentiment. The pound has shown resilience, but upside momentum remains constrained by key resistance levels, with investors closely monitoring macroeconomic data and central bank cues.

On the 4-hour chart, the immediate pivot point at $1.22453 is a crucial level to watch. A break above this threshold could pave the way for further upside, targeting immediate resistance at $1.23125, followed by higher resistance levels at $1.24064 and $1.24962.

However, failure to clear the pivot point may invite renewed selling pressure, with immediate support located at $1.21034, followed by deeper levels at $1.20174 and $1.19346, which could act as potential rebound zones if downward momentum intensifies.

Technically, the 50-day EMA, currently positioned at $1.22441, suggests a neutral to bearish outlook, as the price remains slightly below this key level. A sustained move beneath the EMA may indicate further bearish pressure, potentially driving the pair toward support zones.

In conclusion, a short position below $1.22465 could provide an attractive risk-reward setup, with a take-profit target set at $1.21019 and a stop-loss placed at $1.23155 to mitigate potential upside risks.

Traders should remain vigilant as market dynamics could shift swiftly amid changing economic conditions and geopolitical factors.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.22465

Take Profit – 1.21019

Stop Loss – 1.23155

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$1446/ -$690

Profit & Loss Per Mini Lot = +$144/ -$69