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

Daily Price Outlook

- GBP/USD faces selling pressure below $1.2835.

- RSI shows weak momentum; 50-SMA caps recovery.

- Breakdown below $1.2707 could open room toward $1.2559.

The British pound is attempting a short-term recovery against the U.S. dollar, but gains remain capped below the $1.2835 resistance. After plunging from the $1.3150 high, GBP/USD has been testing broken support levels as resistance, with the pair currently hovering near the trendline retest zone.

Despite the bounce from $1.2711 support, price action remains fragile as the 50-SMA near $1.2923 reinforces downside pressure.

The Relative Strength Index (RSI) sits at 45.5, showing a modest uptick in momentum, though still beneath the bullish threshold of 50.

This suggests a recovery is underway but lacks strong conviction. A sustained break below $1.2835 could trigger another leg lower toward $1.2707, with a deeper slide targeting $1.2638 and $1.2559.

From a risk-reward perspective, sellers may view this as a favorable zone to reenter, given the clear rejection at trendline resistance. On the upside, only a clean break above $1.2906 would negate the bearish structure and shift momentum toward $1.2983.

Traders watching macro catalysts, including U.S. CPI data this week, should remain cautious. Until then, short setups remain technically favorable below $1.2835, targeting a retest of recent lows near $1.2707, with a stop above $1.2906 to manage risk.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.28358

Take Profit – 1.27078

Stop Loss – 1.29068

Risk to Reward – 1: 1.8

Profit & Loss Per Standard Lot = +$1280/ -$710

Profit & Loss Per Mini Lot = +$128/ -$71