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

Daily Price Outlook

- Breakout above $1.31025 strengthens bullish outlook

- RSI in overbought zone signals momentum, but caution warranted

- Trendline structure and SMA support the upward bias

The British pound has resumed its climb against the U.S. dollar, currently trading at $1.31659 after holding the uptrend support. The pair broke above the critical $1.31025 pivot level, turning it into new support and validating a bullish continuation setup.

RSI is above 73, suggesting buying momentum remains elevated, although price is now flirting with overbought conditions.

Price action is aligned with a rising trendline, and as long as that structure holds, the bullish case toward $1.32078 remains valid. If this resistance breaks convincingly, GBP/USD could extend to $1.32697, and potentially toward the psychological barrier at $1.33236. A pullback below $1.31025, however, would expose the market to deeper corrections toward $1.30387 and $1.29847.

The technical setup favors a bullish bias as long as price stays above $1.31025. Traders may consider initiating long positions on a sustained break, aiming for $1.32078 while managing risk tightly below $1.30387.

GBP/USD - Trade Ideas

Entry Price – Buy Above 1.31025

Take Profit – 1.32078

Stop Loss – 1.30387

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$1053/ -$638

Profit & Loss Per Mini Lot = +$105/ -$63