GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD faces resistance at $1.24290, with the 50-day EMA limiting upside momentum.
- A breakout above $1.24599 could spark a rally toward $1.25374 and beyond.
- Failure to hold $1.23668 may trigger a bearish move toward $1.23048 and $1.22507.
The GBP/USD pair is trading at $1.24049, down 0.02%, as the market consolidates following recent fluctuations. The 50-day Exponential Moving Average (EMA) at $1.24290 is acting as a resistance level, restricting bullish momentum while the pair struggles to maintain its footing above the pivot point at $1.23668.
With the U.S. dollar showing strength amid shifting macroeconomic conditions, GBP/USD remains vulnerable to further downside pressure.
The pivot point at $1.23668 is a crucial marker for trend direction. Holding above this level keeps the bullish bias intact, with immediate resistance at $1.24599, followed by $1.25374 and $1.25987.
A decisive break above these levels could open the door for a sustained upward move, particularly if market sentiment shifts in favor of the British pound.
On the downside, immediate support is seen at $1.23048, with further weakness potentially extending declines toward $1.22507 and $1.21903.
A failure to defend these levels could accelerate selling pressure, leading to deeper losses. However, a successful hold above $1.23668 may attract buyers, positioning GBP/USD for a possible rebound.
Traders considering a long position should look for entries above $1.23676, targeting $1.24422, with a stop loss at $1.23225 to manage risk effectively. If GBP/USD fails to sustain above the pivot, sellers may take control, driving the pair lower in the short term.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.23676
Take Profit – 1.24422
Stop Loss – 1.23225
Risk to Reward – 1:1.6
Profit & Loss Per Standard Lot = +$746/ -$451
Profit & Loss Per Mini Lot = +$74/ -$45
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