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

Daily Price Outlook

- Bearish below $1.29434, with downside targets at $1.28932 and $1.28611.

- 50-day EMA at $1.29411 acting as resistance; failure to break higher could signal further downside.

- Entry Price: Sell Below $1.29432 | Target: $1.29022 | Stop Loss: $1.29696.

GBP/USD is trading at $1.29363, slightly lower by 0.02%, as it struggles to hold above the $1.29434 pivot point. The pair remains under pressure, hovering just below the 50-day EMA at $1.29411, indicating a potential bearish continuation if resistance levels fail to hold.

A breakdown below $1.29434 could accelerate selling momentum, exposing immediate support at $1.28932, with further downside potential toward $1.28611 and $1.28202.

On the upside, a recovery above $1.29830 could shift sentiment, with buyers targeting $1.30150 and $1.30457. However, the prevailing market sentiment favors a weaker pound amid ongoing economic uncertainty.

The pair remains influenced by Federal Reserve rate expectations and Bank of England (BoE) policy outlook. With traders anticipating a 75% chance of a Fed rate cut by June, according to CME’s FedWatch Tool, the U.S. dollar remains relatively firm.

Meanwhile, UK inflation data due later this week could provide further directional cues for GBP/USD. A weaker-than-expected inflation print may reinforce expectations of a BoE rate cut, weighing further on the pound.

Traders should closely monitor price action around the $1.29434 pivot level. A sustained move below this mark could trigger further declines, while a rebound above $1.29830 may shift momentum toward the upside.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.29432

Take Profit – 1.29022

Stop Loss – 1.29696

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$410/ -$264

Profit & Loss Per Mini Lot = +$41/ -$26