Daily Price Outlook

- GBP/USD trades at $1.27014, below the $1.27860 pivot, signaling short-term bearish bias.

- Resistance stands at $1.28351, with key support at $1.26666.

- Sell limit at $1.27217 targets $1.26588, with a stop at $1.27678.

The GBP/USD pair is trading at $1.27014, down 0.05%, reflecting a cautious sentiment as the pair remains near a key support level.

The pivot point at $1.27860 acts as a critical resistance, with the pair trading just below the 50 EMA at $1.27176, reinforcing a short-term bearish bias.

Immediate resistance lies at $1.28351, followed by $1.28742, levels that need to be breached to signal a shift in sentiment.

On the downside, the pair finds immediate support at $1.26666, with further levels at $1.26070 and $1.25636 providing key targets for bearish momentum. The RSI at 51 signals neutrality, suggesting limited immediate momentum but leaving room for directional movement.

Traders are positioning for a Sell Limit at $1.27217, targeting $1.26588, with a stop loss at $1.27678 to manage upside risks.

For now, GBP/USD remains rangebound, with a bearish outlook prevailing unless the price reclaims the pivot point and surpasses the 50 EMA.

A failure to hold support at $1.26666 could open the door for further declines toward $1.26070.

The pair’s direction hinges on a break above resistance or below key support, with the overall sentiment skewed slightly bearish.

GBP/USD - Trade Ideas

Entry Price – Sell Limit 1.27217

Take Profit – 1.26588

Stop Loss – 1.27678

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$629/ -$461

Profit & Loss Per Mini Lot = +$62/ -$46

Daily Price Outlook

During the European trading session, the GBP/USD pair climbed to around 1.2647, briefly reaching an intraday high of 1.2671.

This upward movement was driven by the release of the UK’s flash S&P Global/CIPS Purchasing Managers’ Index (PMI) data.

The report revealed that overall business activity in the UK expanded modestly, with the PMI rising to 50.5. Meanwhile, the US dollar weakened, turning bearish ahead of key monetary policy meetings this week.

Moving ahead, Federal Reserve is set to meet on Wednesday, followed by the Bank of England on Thursday, adding to market anticipation and influencing the currency pair's performance.

GBP/USD Volatility Set to Increase Ahead of Fed and BoE Meetings Amid Mixed UK PMI Data

On the BoE front, the release of the UK’s flash S&P Global/CIPS PMI data offered mixed signals. Overall business activity expanded at a steady pace, with the PMI rising to 50.5.

However, the manufacturing sector showed a faster-than-expected contraction, with its PMI dropping to 47.3 from 48.0 in November, against forecasts of 48.1.

On the other hand, the services sector grew more robustly, with its PMI climbing to 51.4, beating expectations of 51.0 and the previous month’s 50.8.

Despite this moderate growth, businesses remain cautious due to fragile consumer confidence, tighter budgets, and cutbacks in non-essential spending.

The report also revealed a decline in staffing for the third straight month, partly due to upcoming increases in National Insurance contributions.

Meanwhile, the Pound Sterling gained strength against the US Dollar, which remained subdued with the US Dollar Index (DXY) around 107.00.

Investors are bracing for volatility in the GBP/USD pair this week as both the Federal Reserve (Fed) and the Bank of England (BoE) are set for their final policy meetings of the year.

The Fed is expected to reduce interest rates by 25 basis points to 4.25%-4.50%, while the BoE is likely to keep its rates unchanged at 4.75%.

However, with these rate decisions largely priced in, market attention is shifting toward the outlook for 2025, where traders anticipate three rate cuts from both central banks.

In addition to the central bank meetings, UK economic data will also influence the Pound this week. Employment figures for the three months ending in October and the Consumer Price Index (CPI) data for November will be released on Tuesday and Wednesday.

Any significant deviation from expected numbers could influence market expectations for the BoE’s future actions and its policy stance for 2025.

(GBP/USD) – Technical Analysis

The GBP/USD pair is trading at $1.26392, up 0.24%, as buyers extend gains above the pivot point of $1.26160. The immediate resistance sits at $1.26725, where a break higher could open the door to further upside, targeting resistance levels at $1.27194 and $1.27860.

Market sentiment remains cautiously optimistic, with the pound benefiting from renewed risk appetite and technical buying momentum.

On the downside, immediate support is seen at $1.25679, followed by further levels at $1.25239 and $1.24866, which could attract dip-buyers if the pair retraces.

Despite the current uptick, the 50-day EMA at $1.27096 looms overhead as a key hurdle for bullish continuation, and any failure to breach this resistance could trigger a pullback.

The Relative Strength Index (RSI) stands at 40, signaling mild bearish pressure but also leaving room for a potential recovery.

The technical setup suggests cautious buying above the pivot point at $1.26160, with a target of $1.26742 and a stop loss at $1.25862 to manage downside risks.

In conclusion, the GBP/USD remains in a consolidative phase, but the short-term bias tilts bullish above $1.26160.

A sustained push above $1.26725 would reinforce upward momentum, while failure to hold the pivot could expose the pair to further selling pressure.

Related News

- GOLD Price Analysis – Dec 16, 2024

- EUR/USD Price Analysis – Dec 16, 2024

- GBP/USD Price Analysis – Dec 11, 2024

Daily Price Outlook

- Immediate Resistance: $1.26725; Next Levels: $1.27194 and $1.27860.

- Support Levels: $1.25679; Further Supports: $1.25239 and $1.24866.

- Indicators: RSI at 40 signals mild bearish pressure; 50 EMA at $1.27096 remains a key hurdle.

The GBP/USD pair is trading at $1.26392, up 0.24%, as buyers extend gains above the pivot point of $1.26160. The immediate resistance sits at $1.26725, where a break higher could open the door to further upside, targeting resistance levels at $1.27194 and $1.27860.

Market sentiment remains cautiously optimistic, with the pound benefiting from renewed risk appetite and technical buying momentum.

On the downside, immediate support is seen at $1.25679, followed by further levels at $1.25239 and $1.24866, which could attract dip-buyers if the pair retraces.

Despite the current uptick, the 50-day EMA at $1.27096 looms overhead as a key hurdle for bullish continuation, and any failure to breach this resistance could trigger a pullback.

The Relative Strength Index (RSI) stands at 40, signaling mild bearish pressure but also leaving room for a potential recovery.

The technical setup suggests cautious buying above the pivot point at $1.26160, with a target of $1.26742 and a stop loss at $1.25862 to manage downside risks.

In conclusion, the GBP/USD remains in a consolidative phase, but the short-term bias tilts bullish above $1.26160.

A sustained push above $1.26725 would reinforce upward momentum, while failure to hold the pivot could expose the pair to further selling pressure.

GBP/USD - Trade Ideas

Entry Price – Buy Limit 1.26158

Take Profit – 1.26742

Stop Loss – 1.25862

Risk to Reward – 1: 1.9

Profit & Loss Per Standard Lot = +$584/ -$296

Profit & Loss Per Mini Lot = +$58/ -$29

Daily Price Outlook

- Bullish Momentum Intact: GBP/USD trades above the pivot at $1.27356, supported by the 50 EMA at $1.27529.

- Key Resistance at $1.27986: Breaking this level may trigger further gains toward $1.28322 and $1.28665.

- Strategic Buy-Limit Entry: Enter long at $1.27362, target $1.27979, with a stop-loss at $1.26958 for risk management.

The GBP/USD pair is trading at $1.27680, reflecting a 0.6% gain on the day and signaling moderate bullish momentum on the 4-hour chart. The pivot point at $1.27356 serves as a critical level, with prices attempting to hold above it.

Immediate resistance is situated at $1.27986, followed by $1.28322 and $1.28665. On the downside, immediate support lies at $1.26955, with additional support levels at $1.26546 and $1.26169.

Technical indicators provide mixed signals. The RSI is at 53, indicating a balanced market sentiment, neither overbought nor oversold. The 50 EMA, positioned at $1.27529, aligns with current price action, reinforcing the bullish bias as long as prices remain above this level.

A sustained move above $1.27986 could propel GBP/USD toward the next resistance at $1.28322, signaling continued buying interest.

Traders may consider a buy-limit strategy at $1.27362, targeting $1.27979, with a stop-loss at $1.26958. This approach capitalizes on the bullish trend while managing downside risk in the event of a reversal.

However, a break below the pivot point could invalidate this outlook, opening the door for further declines toward $1.26955 or lower support levels.

GBP/USD - Trade Ideas

Entry Price – Buy Limit 1.27362

Take Profit – 1.27979

Stop Loss – 1.26958

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$617/ -$404

Profit & Loss Per Mini Lot = +$61/ -$40

Daily Price Outlook

During the European trading session, the GBP/USD currency pair struggled to halt its bearish trend and stayed under pressure around 1.2725, hitting an intraday low of 1.2713.

The decline was mainly driven by the stronger US Dollar, which gained support ahead of the release of the US Consumer Price Index (CPI) data for November, scheduled at 13:30 GMT.

Investors are keenly watching this report as it could influence expectations for the Federal Reserve’s future interest rate decisions.

Meanwhile, the British Pound faced additional challenges due to a lack of significant economic events in the UK. With a relatively quiet economic calendar, the focus has shifted to the Bank of England’s upcoming policy meeting on December 19.

Market participants are speculating on whether the BoE will maintain its current stance or take further action on interest rates.

Until then, the Pound is likely to remain under pressure, especially as it struggles to find clear direction against major currencies like the Euro and US Dollar.

US Dollar Strengthened by CPI Data and Fed Rate Cut Expectations, Impact on GBP/USD

On the US front, the broad-based US dollar maintained its upward trend as investors awaited the release of the November Consumer Price Index (CPI) data, scheduled for 13:30 GMT.

The inflation report is expected to show that the annual headline CPI increased slightly to 2.7% from the previous 2.6%.

The core CPI, which excludes food and energy prices, is forecasted to rise steadily by 3.3%. On a monthly basis, both the headline and core CPI are expected to grow by 0.3%.

This inflation data is unlikely to change the Federal Reserve's interest rate plans for the meeting on December 18, unless the numbers differ significantly from expectations.

According to a recent Reuters poll, 90% of economists believe the Fed will cut interest rates by 25 basis points next week.

The poll also suggests that most economists expect the Fed to pause any further rate cuts starting in January 2025, assuming that US President-elect Donald Trump's policies, such as higher import tariffs and tax cuts, could lead to higher inflation.

Therefore, the expected CPI data and the Fed's likely interest rate cut may support the US dollar, potentially keeping the GBP/USD pair under pressure. If inflation figures align with expectations, the pair could remain in a consolidative range until further clarity.

BoE Rate Decision and Economic Data to Drive Market Sentiment

On the GBP front, the Pound Sterling is struggling to find direction against other major currencies due to a quiet UK economic calendar.

As a result, the British currency's movement will largely depend on market expectations for the Bank of England’s (BoE) interest rate decision on December 19.

Traders expect the BoE to keep interest rates unchanged at 4.75% next week as inflationary pressures persist.

However, upcoming economic data, such as the UK’s employment report for the three months ending in October and the November Consumer Price Index (CPI), could influence the BoE's future rate decisions.

At the same time, concerns about the UK labor market could lead the BoE to adopt a more cautious stance.

A recent survey showed that employment growth expectations for the next year have dropped to a four-year low.

Later this week, investors will focus on the UK’s monthly Gross Domestic Product (GDP) and Industrial Production data for October.

These reports will provide a clearer picture of the UK economy’s health, with expectations of a recovery in both factory output and GDP after a decline in September. These indicators could further shape expectations for the BoE’s policy direction.

GBP/USD – Technical Analysis

The GBP/USD pair is trading at $1.27680, reflecting a 0.6% gain on the day and signaling moderate bullish momentum on the 4-hour chart. The pivot point at $1.27356 serves as a critical level, with prices attempting to hold above it.

Immediate resistance is situated at $1.27986, followed by $1.28322 and $1.28665. On the downside, immediate support lies at $1.26955, with additional support levels at $1.26546 and $1.26169.

Technical indicators provide mixed signals. The RSI is at 53, indicating a balanced market sentiment, neither overbought nor oversold. The 50 EMA, positioned at $1.27529, aligns with current price action, reinforcing the bullish bias as long as prices remain above this level.

A sustained move above $1.27986 could propel GBP/USD toward the next resistance at $1.28322, signaling continued buying interest.

Traders may consider a buy-limit strategy at $1.27362, targeting $1.27979, with a stop-loss at $1.26958. This approach capitalizes on the bullish trend while managing downside risk in the event of a reversal.

However, a break below the pivot point could invalidate this outlook, opening the door for further declines toward $1.26955 or lower support levels.

Related News

- GOLD Price Analysis – Dec 11, 2024

- EUR/USD Price Analysis – Dec 11, 2024

- GBP/USD Price Analysis – Dec 09, 2024

Daily Price Outlook

- Neutral Momentum: RSI at 45 and price near the 50 EMA ($1.27437) indicate limited directional bias.

- Key Levels: Resistance at $1.27957; support levels at $1.27171 and $1.26875 to watch for shifts in sentiment.

- Trading Strategy: Buy above $1.27173, target $1.27561, and manage risk with a stop loss at $1.26937.

GBP/USD is trading at $1.27340, down 0.03%, as the pair remains range-bound near the pivot point of $1.27551. The 50-day EMA at $1.27437 reflects slight bearish pressure as the price hovers just below this level, signaling caution among traders.

Immediate resistance is noted at $1.27957, with subsequent levels at $1.28367, suggesting that a recovery above the pivot could open the door for further gains.

On the downside, immediate support lies at $1.27171, with additional safety levels at $1.26875 and $1.26595. A break below $1.27171 could indicate further selling pressure, potentially driving the pair toward the $1.26298 zone.

The RSI at 45 signals neutral momentum, leaning slightly bearish but not yet oversold, leaving room for either direction depending on market catalysts.

A sustained break above $1.27551 would reinforce bullish momentum, targeting $1.27957 as the first resistance. Conversely, failure to hold $1.27171 could shift the focus to the next support levels.

GBP/USD - Trade Ideas

Entry Price – Buy Above 1.27173

Take Profit – 1.27561

Stop Loss – 1.26937

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$388/ -$236

Profit & Loss Per Mini Lot = +$38/ -$23

Daily Price Outlook

During the European trading session, the GBP/USD currency pair continued its upward movement, gaining momentum around the 1.2778 level and reaching an intraday high of 1.2784.

This bullish trend can largely be attributed to a weakening US dollar, which lost strength as investors grew more confident that the Federal Reserve would likely cut interest rates during its December 18 meeting.

At the same time, the GBP/USD pair benefited from expectations that the Bank of England will adopt a slower pace of policy easing due to ongoing concerns about persistent inflation pressures.

Looking ahead, all eyes are on the upcoming US Consumer Price Index (CPI) data for November, set to be released on Wednesday. Analysts expect headline CPI inflation to edge up to 2.7% from the previous 2.6%.

In the meantime, the core CPI, which excludes volatile food and energy prices, is forecast to remain steady at 3.3%. Investors are hoping these numbers will provide more insight into the current inflation situation.

US Dollar Weakened by Growing Fed Rate Cut Expectations, Boosting GBP/USD

On the US front, the broad-based US dollar has been under pressure as market participants grow increasingly confident that the Federal Reserve (Fed) will cut interest rates in its meeting on December 18.

There’s an 83% chance that the Fed will lower its key borrowing rate by 25 basis points to 4.25%-4.50% next week, according to the CME FedWatch tool. This is up from 62% a week ago, signaling rising expectations for a rate cut.

However, the speculation about the Fed’s rate cut strengthened after the release of the US Nonfarm Payrolls (NFP) data for November. The report showed the economy added 227,000 jobs, beating the 200,000 forecast.

However, the unemployment rate also rose slightly to 4.2%, as expected. Additionally, average hourly earnings grew by 0.4% month-over-month and 4% year-over-year, both higher than estimates, suggesting continued inflation pressures.

Despite this strong data, Federal Reserve Governor Michelle Bowman indicated on Friday that she would prefer a cautious and gradual approach to cutting rates, as inflation remains high.

This comment contrasts with the growing market expectation for rate cuts and highlights the ongoing debate within the Fed about the best approach to tackle inflation while supporting the economy.

Therefore, the growing expectation of a Fed rate cut has supported the GBP/USD pair, as the US dollar weakens. Investors anticipate that the Fed's actions could make the dollar less attractive, boosting the British pound's value against the Greenback.

GBP Strengthened by BoE’s Gradual Policy Easing, but Weakened by Declining UK Labor Demand

On the GBP front, the British pound is generally strong against its major counterparts, except for some Asia-Pacific currencies, as the Bank of England (BoE) is expected to take a more gradual approach to easing its monetary policy. This is due to concerns that inflationary pressures remain persistent.

BoE's Monetary Policy Committee (MPC) member Megan Greene mentioned that the bank could reach its inflation target by the end of its three-year forecast period.

BoE Governor Andrew Bailey also stated that while there’s still work to do to bring inflation down to the 2% target, the disinflation process is progressing well.

Investors are keeping a close eye on the BoE's next steps, especially with the upcoming speech by Deputy Governor Dave Ramsden, scheduled for 13:00 GMT on Monday.

Ramsden has been one of the BoE policymakers who has leaned towards reducing interest rates, which could influence market sentiment on the pound. His comments may provide more clarity on the BoE's stance regarding future rate cuts or increases.

On the economic front, a recent survey by the Recruitment and Employment Confederation (REC) and KPMG showed a decline in demand for workers in the UK.

This came after the government raised Employer’s National Insurance Contributions (NIC) to 15%. The survey revealed that demand for staff fell to its lowest level since August 2020, highlighting ongoing concerns in the labor market.

Thus, the British pound remains strong against the US dollar, supported by the Bank of England's cautious approach to monetary policy easing. However, the decline in UK labor demand could weigh on the pound, limiting further upside against the US dollar.

GBP/USD – Technical Analysis

GBP/USD is trading at $1.27340, down 0.03%, as the pair remains range-bound near the pivot point of $1.27551. The 50-day EMA at $1.27437 reflects slight bearish pressure as the price hovers just below this level, signaling caution among traders.

Immediate resistance is noted at $1.27957, with subsequent levels at $1.28367, suggesting that a recovery above the pivot could open the door for further gains.

On the downside, immediate support lies at $1.27171, with additional safety levels at $1.26875 and $1.26595. A break below $1.27171 could indicate further selling pressure, potentially driving the pair toward the $1.26298 zone.

The RSI at 45 signals neutral momentum, leaning slightly bearish but not yet oversold, leaving room for either direction depending on market catalysts.

A sustained break above $1.27551 would reinforce bullish momentum, targeting $1.27957 as the first resistance. Conversely, failure to hold $1.27171 could shift the focus to the next support levels.

Related News

- GOLD Price Analysis – Dec 09, 2024

- EUR/USD Price Analysis – Dec 09, 2024

- GBP/USD Price Analysis – Dec 04, 2024

Daily Price Outlook

During the European trading session, the GBP/USD currency pair struggled to recover and stayed bearish around 1.2671, briefly touching an intra-day low of 1.2630.

This downward momentum was primarily driven by the strength of the US Dollar, which gained traction as investors remained focused on upcoming US Nonfarm Payrolls (NFP) data due Friday.

The anticipation of this report has heightened market expectations about the Federal Reserve’s policy direction. With the Fed initiating a policy-easing cycle in September due to concerns over slowing labor demand, confidence remains strong that inflation will stay on track toward the 2% target.

Meanwhile, the Pound Sterling faced additional pressure after Bank of England (BoE) Governor Andrew Bailey hinted at potential interest rate cuts in 2025, forecasting four reductions as he expects the disinflation trend to solidify.

This dovish outlook has dampened the Pound’s appeal against its major peers, including the US Dollar. As a result, the GBP/USD pair experienced volatility, reflecting uncertainty in market sentiment.

US Economic Data and Fed Insights Weigh on GBP as Market Awaits Key Releases

On the US front, the Pound Sterling remained under pressure mainly due to the strengthening US Dollar, supported by rising investor confidence ahead of key economic data releases.

The Pound’s appeal was further weighed down by cautious market sentiment, especially after recent remarks by Bank of England Governor Andrew Bailey, who hinted at potential rate cuts in 2025.

Meanwhile, attention is turning toward US Nonfarm Payrolls (NFP) data, set to be released on Friday.

This report is crucial as the Federal Reserve has already begun a policy-easing cycle, driven by concerns over slowing labor demand. Markets remain optimistic that inflation will stay on course toward the Fed’s 2% target.

On Wednesday, all eyes are on Fed Chair Jerome Powell’s speech at the New York Times DealBook Summit, where investors hope to gain fresh insights into the Fed’s interest rate plans. Current market expectations suggest a 74% chance of a rate cut to 4.25%-4.50% in the coming months.

Economic data releases on Wednesday, including the US ADP Employment Change and ISM Services PMI, are also key focal points. Analysts predict the US private sector added 150K jobs in November, a notable drop from October’s 233K.

The ISM Services PMI is expected to ease slightly to 55.5 from 56.0, signaling a slower pace of growth but still reflecting an expanding economy. These figures will provide further clues about the state of the US economy and the potential direction of Federal Reserve policy.

Pound Sterling Pressured as BoE Signals Future Rate Cuts Amid Persistent Inflation Concerns

On the GBP front, the Pound Sterling faced selling pressure on Wednesday after Bank of England (BoE) Governor Andrew Bailey predicted four interest-rate cuts in 2025 during an interview.

He highlighted the need to reduce rates gradually while emphasizing that more effort is needed to bring inflation down, even though the disinflation process is already underway.

When asked about the potential impact of US tariffs under President-elect Donald Trump on UK inflation, Bailey said the effects are challenging to predict.

Bailey did not provide any clear signals about the BoE’s next move at its upcoming monetary policy meeting on December 19. However, traders widely expect the central bank to keep interest rates steady at 4.75%.

This expectation is driven by concerns over the persistence of UK inflation, which remains a key focus for policymakers.

Meanwhile, the UK’s October inflation report showed that core inflation, excluding volatile items, rose to 3.3%, while services inflation climbed to 5%.

The BoE closely monitors services inflation as it reflects underlying price pressures in the economy. These figures have added to the cautious sentiment, making it likely that the BoE will hold off on any immediate rate changes.

GBP/USD – Technical Analysis

GBP/USD is trading at $1.26866, up 0.11%, maintaining a mildly bullish tone as it hovers just above its 50-day EMA at $1.26799. The pair is consolidating below its pivot point of $1.27106, with immediate resistance at $1.27496.

Further resistance levels are noted at $1.27833, suggesting potential upside targets if the pair sustains momentum. On the downside, support is seen at $1.26169, followed by $1.25817 and $1.25386.

The RSI stands at 53, reflecting modest bullish momentum but not yet signaling overbought conditions. A decisive move above the pivot point could validate the bullish bias, targeting $1.27496 and beyond.

However, a break below $1.26645 may expose the pair to further declines, targeting the $1.26169 support zone.

Entry opportunities above $1.26645 align with the current trend, with profit targets near $1.27098 and a prudent stop-loss at $1.26323 to manage downside risks.

Related News

- GOLD Price Analysis – Dec 04, 2024

- EUR/USD Price Analysis – Dec 04, 202

- GBP/USD Price Analysis – Dec 02, 2024

Daily Price Outlook

- Resistance Levels: $1.27496, $1.27833; pivot at $1.27106 critical for further gains.

- Support Levels: $1.26169, $1.25817; failure below $1.26645 risks deeper correction.

- Indicators: RSI at 53 indicates mild bullish momentum; 50 EMA at $1.26799 underpins the uptrend.

GBP/USD is trading at $1.26866, up 0.11%, maintaining a mildly bullish tone as it hovers just above its 50-day EMA at $1.26799. The pair is consolidating below its pivot point of $1.27106, with immediate resistance at $1.27496.

Further resistance levels are noted at $1.27833, suggesting potential upside targets if the pair sustains momentum. On the downside, support is seen at $1.26169, followed by $1.25817 and $1.25386.

The RSI stands at 53, reflecting modest bullish momentum but not yet signaling overbought conditions. A decisive move above the pivot point could validate the bullish bias, targeting $1.27496 and beyond.

However, a break below $1.26645 may expose the pair to further declines, targeting the $1.26169 support zone.

Entry opportunities above $1.26645 align with the current trend, with profit targets near $1.27098 and a prudent stop-loss at $1.26323 to manage downside risks.

GBP/USD - Trade Ideas

Entry Price – Buy Above 1.26645

Take Profit – 1.27098

Stop Loss – 1.26323

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$453/ -$322

Profit & Loss Per Mini Lot = +$45/ -$32

Daily Price Outlook

- Resistance Levels: $1.27486, $1.28086, $1.28575.

- Support Levels: $1.26175, $1.25669, $1.25072.

- Momentum: RSI at 50 shows a neutral trend, with the 50-day EMA at $1.26473 providing nearby support.

The GBP/USD pair is trading at $1.2692, showing cautious consolidation near the pivot point at $1.26758. The pair reflects indecision, with price movement closely aligned to key technical levels.

Immediate resistance stands at $1.27486, followed by $1.28086 and $1.28575. A breakout above $1.27486 could attract further bullish momentum, supported by the 50-day EMA at $1.26473, which reinforces underlying support.

On the downside, immediate support is identified at $1.26175, with further critical levels at $1.25669 and $1.25072. The Relative Strength Index (RSI) is neutral at 50, indicating a balance between bullish and bearish forces. A sustained move below $1.26758 could drive prices toward $1.26175 and signal a broader bearish sentiment.

While the broader trend remains uncertain, the pair's proximity to its pivot point suggests a critical juncture. Bulls must reclaim $1.27486 for a potential rally, while failure to hold above $1.26758 may lead to downside risks.

GBP/USD - Trade Ideas

Entry Price – Buy Above 1.26751

Take Profit – 1.27479

Stop Loss – 1.26377

Risk to Reward – 1: 1.9

Profit & Loss Per Standard Lot = +$728/ -$374

Profit & Loss Per Mini Lot = +$72/ -$37