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

Daily Price Outlook

- Momentum Builds: GBP/USD extends gains beyond $1.3207, targeting the $1.3340 extension.

- Trend Confirmation: Price is well above the 50-SMA, supporting the bullish case.

- Watch RSI: At 74.1, the indicator warns of limited near-term upside without pause.

GBP/USD is extending its upward momentum after confirming a breakout above the key $1.3207 Fibonacci level. The pair has now entered a higher resistance zone, targeting the 1.272 Fibonacci extension at $1.3340.

The rally from the $1.2700 region has been steady, with price consistently printing higher highs and respecting short-term support levels — a sign of sustained buyer interest.

The 50-period Simple Moving Average (SMA), currently at $1.2981, is sloping upward and well below the current price, underlining the strength of the bullish structure.

Momentum indicators also support this trend, with the Relative Strength Index (RSI) at 74.1, showing overbought conditions but not yet diverging. This could signal that bullish sentiment remains intact, though short-term pullbacks should not be ruled out.

Immediate resistance lies at $1.3340. A break above this could expose the next key levels at $1.3412 and $1.3512. On the downside, the first support is seen at $1.3207 — the breakout level — followed by $1.3133, which marks the lower boundary of the most recent bullish impulse.

While overbought signals warrant some caution, price action suggests that dips may offer renewed buying opportunities as long as the pair holds above $1.3133.

GBP/USD - Trade Ideas

Entry Price – Buy Above 1.32071

Take Profit – 1.33400

Stop Loss – 1.31333

Risk to Reward – 1: 1.8

Profit & Loss Per Standard Lot = +$1329/ -$738

Profit & Loss Per Mini Lot = +$132/ -$73