Daily Price Outlook

- Bullish bias remains above $1.25906, with resistance at $1.26667 and a breakout potential toward $1.27128.

- 50-EMA at $1.24963 suggests underlying support, but a drop below $1.25209 may invite further selling pressure.

- Trade setup: Buy above $1.25899, target $1.26677, stop loss at $1.25537 for risk management.

The GBP/USD pair is trading at $1.26222, dipping -0.01%, as markets remain cautious amid shifting sentiment around the U.S. dollar.

The pair is hovering just above its pivot point at $1.25906, which serves as a crucial level—holding above this keeps the short-term bullish case intact, while a break lower could shift momentum back in favor of sellers.

On the upside, immediate resistance stands at $1.26667, and a breakout above this level could push the pair toward $1.27128, with an extended move targeting $1.27569 if bullish momentum builds.

However, if the pound fails to sustain its footing, support at $1.25209 could be tested. A breach below this level would expose the next downside targets at $1.24528 and $1.23883, where buyers may look to re-enter.

From a technical perspective, the 50-EMA at $1.24963 remains below the current price, reinforcing near-term bullish sentiment.

The overall trend, however, is delicate, with traders closely watching whether the pound can hold above the pivot zone. The broader picture suggests that while buyers have an edge, a failure to clear resistance levels could invite renewed selling pressure.

For traders, a buy entry above $1.25899 appears favorable, with a take-profit target at $1.26677, while a stop loss at $1.25537 helps mitigate downside risk.

The pound’s next directional move hinges on its ability to sustain above $1.25906, as a failure to do so may trigger increased volatility.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD - Trade Ideas

Entry Price – Buy Above 1.25899

Take Profit – 1.26677

Stop Loss – 1.25537

Risk to Reward – 1: 2.1

Profit & Loss Per Standard Lot = +$778/ -$362

Profit & Loss Per Mini Lot = +$77/ -$36

GBP/USD

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