Daily Price Outlook

• GBP/USD extends downward movement, moving away from the 1.2640 level, supporting the continuation of the bearish trend with potential support at 1.2580 and 1.2515.
• The double top pattern remains influential, reinforcing the bearish wave. A rally above 1.2680 and 1.2720 levels would challenge this outlook.
• Expected trading range for today: Support at 1.2530, Resistance at 1.2690.

The GBP/USD pair extended its downward movement, distancing itself from the 1.2640 level. This reinforces our expectation of a continued correctional bearish trend, with the next potential support levels at 1.2580 and 1.2515.

The ongoing influence of the double top pattern supports the continuation of the suggested bearish wave. For this bearish outlook to be challenged, the price would need to rally and surpass the levels of 1.2680 and 1.2720.

In today's trading, we anticipate a range between the support level at 1.2530 and the resistance level at 1.2690.

The prevailing trend for today remains bullish above 1.26023 and bearish below the same.

GBP/USD Price Chart – Source: Tradingview

GBP/USD – Trade Idea

Entry Price – Buy Above 1.2600

Take Profit – 1.27531

Stop Loss – 1.24916

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$1530/ -$1080

Profit & Loss Per Micro Lot = +$153/ -$108

Daily Price Outlook

• GBP/USD pair stands on neutral ground, prancing around 1.2730 after a daring encounter with the 1.2760 resistance.
• Our main characters, the Relative Strength Index and Moving Average Convergence Divergence indicators, indicate a standoff between buyers and sellers.
• A bullish breakout at 1.2760 or a bearish breakout at 1.2695 could set the stage for the next act in this currency.
• In the currency trading scene, the GBP/USD pair has adopted a neutral stance, maintaining its position around the 1.2730 level following its previous brush with the 1.2760 resistance level.

On the shorter time frame, we observe the formation of a descending triangle pattern, with its upper boundary at 1.2760 and a triple bottom support area solidified at the 1.2690 level.

Adding a further layer of complexity to the market dynamics, the Relative Strength Index and the Moving Average Convergence Divergence indicators have been oscillating between the buying and selling zones. This signals an ongoing indecision among the market participants.

On the support front, the 50-day Exponential Moving Average is bolstering the GBP/USD pair at the 1.2720 level. Given these factors, we are eyeing potential breakout points.

A bullish breakout above 1.2760 or conversely, a bearish breakout below 1.2695 could dictate the next significant market move. If a bearish breakout occurs, the pair may venture down towards 1.2660 or even 1.2633. Alternatively, resistance levels to consider on the upside are positioned at 1.2800 and 1.2840.

GOLD Price Chart – Source: Tradingview

GBP/USD – Trade Idea

Entry Price – Buy Above 1.27108
Take Profit – 1.28004
Stop Loss – 1.26692
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$896/ -$416
Profit & Loss Per Micro Lot = +$89/ -$41

Daily Price Outlook

During the Asian trading hours on Wednesday, the GBP/USD pair found it challenging to cross the 200-hour Simple Moving Average (SMA).

Spot rates are currently hovering just around the mid-1.2700s, marking a decrease of less than 0.10% on the day, following substantial advancements the day before that pushed them to a new peak for the week.

Worries about a potential recession in the British economy, especially in light of the Bank of England’s (BoE) surprise 50 basis point rate increase, are hampering traders’ enthusiasm for confident bullish bets on the pound sterling.

This is impacting the GBP/USD pair, though a mild US Dollar (USD) downturn should provide temporary cushioning to the fall.

Traders may choose to remain on the sidelines until later on Wednesday when Fed Chair Jerome Powell and BoE Governor Andrew Bailey take part in a panel discussion at the ECB Forum on Central Banking in Sintra.

GBP/USD cautiously ascends around the mid-1.2700s, focusing on remarks from BoE’s Bailey and Fed Chair Powell.

Defending Tuesday’s remarkable comeback and its first daily profits in four days, the GBP/USD currency pair hovers around 1.2750 in the early hours of Wednesday morning in Asia.

Thus, the Cable pair is reflecting the typical nervousness ahead of anticipated speeches from leading central bankers at the European Central Bank (ECB) Forum in Sintra.

The previous day’s uplift in the GBP/USD pair was underpinned by the market’s optimism regarding the global economic recovery, further bolstered by China, as well as hawkish statements from Bank of England (BoE) policymaker Swati Dhingra.

GOLD Price Chart – Source: Tradingview

GBP/USD – Technical Analysis

In the currency trading scene, the GBP/USD pair has adopted a neutral stance, maintaining its position around the 1.2730 level following its previous brush with the 1.2760 resistance level.

On the shorter time frame, we observe the formation of a descending triangle pattern, with its upper boundary at 1.2760 and a triple bottom support area solidified at the 1.2690 level.

Adding a further layer of complexity to the market dynamics, the Relative Strength Index and the Moving Average Convergence Divergence indicators have been oscillating between the buying and selling zones. This signals an ongoing indecision among the market participants.

On the support front, the 50-day Exponential Moving Average is bolstering the GBP/USD pair at the 1.2720 level. Given these factors, we are eyeing potential breakout points.

A bullish breakout above 1.2760 or conversely, a bearish breakout below 1.2695 could dictate the next significant market move. If a bearish breakout occurs, the pair may venture down towards 1.2660 or even 1.2633. Alternatively, resistance levels to consider on the upside are positioned at 1.2800 and 1.2840.

Daily Price Outlook

The GBP/USD pair failed to react positively to the favorable UK Consumer Confidence data despite the Bank of England’s (BoE) significant rate hike. The Pound Sterling experienced a second consecutive day of decline, reaching an intraday low of 1.2725 in the early hours of Friday.

The GfK Consumer Confidence in the UK improved to -24 in June, the highest level since January 2022, surpassing expectations of -26. The data suggests that the British economy has managed to avoid recession concerns thus far.

Additionally, consumer sentiment regarding the economy in the next 12 months improved to -25 from -30 in May, while views on personal finances increased by seven points to -1.

However, concerns about a potential recession induced by the BoE’s rate hike continue to weigh on the GBP/USD pair. Despite the surprise 50 basis points rate increase by the BoE, the OIS price of the BoE peak rate signals that the tightening cycle might end sooner than anticipated.

Furthermore, the rate hike highlights the economic challenges amidst discussions of a British recession, contributing to the downward pressure on the Pound Sterling.

The GBP/USD pair experienced volatility during the release of UK CPI data, initially finding support but later reversing gains as investors questioned the BoE’s ability to effectively manage inflation without harming the economy.

GBP/USD Price Chart – Source: Tradingview

GBP/USD – Technical Analysis

The GBP/USD pair encounters challenges in confirming a return to its main bullish channel, resulting in a bearish rebound and the initiation of a bearish correctional wave on an intraday basis.

The pair is poised to test the 1.2675 level initially, with a potential breakthrough signaling further decline towards 1.2580 and 1.2515 as key support levels.

As a result, a bearish bias is anticipated for today, although breaking above 1.2790 would negate the negative outlook and guide the price back to its main bullish track.

The trading range for the day is projected between the support level of 1.2620 and the resistance level of 1.2790.

Daily Price Outlook

• GBP/USD faces challenges in returning to bullish channel
• Bearish rebound initiates correctional wave on intraday basis
• Testing 1.2675 level may lead to further decline towards 1.2580 and 1.2515

The GBP/USD pair encounters challenges in confirming a return to its main bullish channel, resulting in a bearish rebound and the initiation of a correctional bearish wave on an intraday basis.

The pair is poised to test the 1.2675 level initially, with a potential breakthrough signaling further decline towards 1.2580 and 1.2515 as key support levels.

As a result, a bearish bias is anticipated for today, although breaking above 1.2790 would negate the negative outlook and guide the price back to its main bullish track.

The trading range for the day is projected between the support level of 1.2620 and the resistance level of 1.2790.

GBP/USD Price Chart – Source: Tradingview

GBP/USD – Trade Idea

Entry Price –Sell Limit 1.27371

Take Profit – 1.26591

Stop Loss – 1.28002

Risk to Reward – 1: 1.2

Profit & Loss Per Standard Lot = +$780/ -$631

Profit & Loss Per Micro Lot = +$78/ -$63

Daily Price Outlook

• GBPUSD pair tests resistance at 1.1940, showing stability below the level.
• Stochastic oscillator signals potential for a decline in future sessions.
• Bearish outlook remains valid unless price breaks above 1.1940 and 1.2020 levels.

The GBPUSD pair continued its upward movement, testing the resistance line at 1.1940. However, it remains stable below this level, with the EMA50 providing additional strength to the resistance. The pair is anticipated to resume its corrective bearish wave, targeting the key level at 1.1625.

The Stochastic oscillator is currently displaying clear negative signals, indicating a potential decline in the upcoming sessions. The price action is confined within a bearish channel visible on the chart.

Hence, our bearish outlook remains valid and active. It is worth noting that a breakthrough above 1.1940, followed by 1.2020, would invalidate the expected decline and lead to a price recovery.

At 11:00 AM, the Bank of England (BOE) released its monetary policy decisions. The MPC Official Bank Rate Votes showed a unanimous decision of 7-0-2, indicating that all seven members voted to maintain the current bank rate, while two members voted for a rate cut.

The Monetary Policy Summary provided an overview of the BOE’s assessment of the economy and its policy outlook.

The Official Bank Rate remained unchanged at 4.50%. This decision reflects the BOE’s commitment to supporting the economy and ensuring price stability. Let’s also keep an eye on it.

GBP/USD Price Chart – Source: Tradingview

GBP/USD – Trade Idea

Entry Price –Buy Limit 1.27110

Take Profit – 1.27962

Stop Loss – 1.26766

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$852/ -$344

Profit & Loss Per Micro Lot = +$85/ -$34

Daily Price Outlook

The GBP/USD pair has risen to 1.2847 today, just slightly below the 61.8% projected level of 1.1801 to 1.2678 from 1.2306 at 1.2848. Currently, the intraday bias is leaning towards the upside.

The Bank of England (BoE) is expected to raise interest rates for the thirteenth consecutive time in its upcoming meeting as it continues to combat persistently high inflation rates in the United Kingdom.

Despite a decrease from double-digit levels, the UK still maintains one of the highest rates of consumer price inflation among major advanced economies.

Market attention will primarily focus on the language of the BoE’s monetary policy statement for any indications regarding its rate hike outlook, as Governor Andrew Bailey’s news conference and revised economic estimates will be absent.

The GBP/USD pair is maintaining its rebound gains below 1.2800, while the US Dollar (USD) lingers close to monthly lows following a sell-off triggered by less hawkish remarks from Fed Chair Jerome Powell during his testimony before the House Financial Services Committee.

Powell emphasized that inflation pressures remain high and that the process of bringing inflation back down to 2% will take time.

Recent UK inflation data, particularly the Core CPI index, which reached its highest rate since March 1992, has influenced market expectations for a 25 basis points (bps) rate hike by the BoE in June.

The likelihood of a 25 bps or 50 bps rate increase has divided investors, with the current estimate leaning toward a 25 bps hike.

Market caution prevails due to concerns about additional central bank actions, with US Treasury bond yields trading near weekly lows and US S&P 500 futures slightly lower. Besides the BoE policy statements, the US Jobless Claims and Powell’s ongoing deposition will also garner attention and influence the short-term direction of the GBP/USD pair.

The BoE is anticipated to release its monetary policy decision and meeting minutes on June 22, with expectations of a 25 bps increase in the benchmark interest rate to a 15-year high of 4.75%. Governor Bailey highlighted the tight labor market and the prolonged duration of inflation’s decline.

The recent UK inflation data supports the notion that the BoE will need to continue with interest rate hikes to address elevated inflation levels.

The GBP/USD pair lacks a clear intraday direction and remains range-bound above the mid-1.2700s as market participants await the BoE policy decision. Wednesday’s hotter-than-expected UK consumer inflation data and optimistic job statistics have increased expectations for tightening monetary policy by the BoE.

Fed Chair Powell’s remarks regarding the fight against inflation and the likelihood of future rate increases have restrained negative USD sentiment, thus limiting downward pressure on the GBP/USD pair.

Overall, the recent pullback from a 14-month high suggests that the path of least resistance for spot prices is higher, indicating a potential upward trajectory for the pair.

GBP/USD Price Chart – Source: Tradingview

GBP/USD – Technical Analysis

The GBPUSD pair continued its upward movement, testing the resistance line at 1.1940. However, it remains stable below this level, with the EMA50 providing additional strength to the resistance. The pair is anticipated to resume its corrective bearish wave, targeting the key level at 1.1625.

The Stochastic oscillator is currently displaying clear negative signals, indicating a potential decline in the upcoming sessions. The price action is confined within a bearish channel visible on the chart.

Hence, our bearish outlook remains valid and active. It is worth noting that a breakthrough above 1.1940, followed by 1.2020, would invalidate the expected decline and lead to a price recovery.

At 11:00 AM, the Bank of England (BOE) released its monetary policy decisions. The MPC Official Bank Rate Votes showed a unanimous decision of 7-0-2, indicating that all seven members voted to maintain the current bank rate, while two members voted for a rate cut.

The Monetary Policy Summary provided an overview of the BOE’s assessment of the economy and its policy outlook.

The Official Bank Rate remained unchanged at 4.50%. This decision reflects the BOE’s commitment to supporting the economy and ensuring price stability. Let’s also keep an eye on it.

Daily Price Outlook

The GBP/USD pair has entered a consolidation phase of around 1.2580 after initially moving higher during the London session. The Cable aims to resume its upward trajectory and surpass the key resistance level 1.2600. Meanwhile, the US Dollar Index (DXY) has faced a strong resistance near 103.70, leading to a corrective pullback.

In the European session, S&P500 futures continue to advance as the probability of the Federal Reserve (Fed) adopting a neutral interest rate policy stance increases. Positive market sentiment prevails as Fed Chair Jerome Powell’s decision to pause monetary policy tightening alleviates concerns about a potential US recession. A report from Goldman Sachs indicates a reduced likelihood of a US economic recession, dropping from 35% to 25%.

The US Dollar Index (DXY) is expected to tread cautiously as investors await the release of the US Consumer Price Index (CPI) data scheduled for Tuesday. Projections suggest a slower acceleration of 0.3% in the monthly headline CPI compared to the 0.4% rise in April. The monthly core inflation is anticipated to remain stable at 0.4%.

Federal Reserve Chair Jerome Powell and his colleagues express concerns about persistent core inflation due to robust demand for durable goods and services. It is worth noting that the US service sector contributes two-thirds of the country’s Gross Domestic Product (GDP).

In the realm of the Pound Sterling, market participants eagerly anticipate the release of the UK Employment data for May. Estimates indicate a decrease of 9.6K in the Claimant Count Change, in contrast to the significant increase of 46.7K reported in April. The Unemployment Rate for the three months is expected to rise to 4.0% from the previous release of 3.9%.

Additionally, attention will be focused on a speech by Bank of England (BoE) Governor Andrew Bailey. Investors will closely monitor any indications regarding future monetary policy actions from the BoE.

GBP/USD Price Chart – Source: Tradingview

GBP/USD – Trade Idea

The GBPUSD pair is making positive strides, gearing up to continue its anticipated bullish run shortly, fueled by the momentum from the recently formed double-bottom pattern. We’re setting our sights on an impressive target of 1.2680 as the pair climbs.

However, the current Stochastic indicator hints at a little turbulence; we might witness some sideways zigzagging before the pair gets its rocket boosters back on.

Take note, though, if the pair slips below 1.2545, it’s like walking on a tightrope as it may dive into testing critical support at 1.2470 before taking another shot at the moon.

Keep an eagle eye on the 1.2500 support and 1.2660 resistance levels for today’s trading landscape.

Daily Price Outlook

• The GBPUSD pair is on the upswing, eyeing a bullish trend with a target of 1.2680, spurred by a double bottom pattern.
• Some sideways movement is possible due to Stochastic indicator’s current negativity, but keep an eye on the 1.2545 mark – breaking it could lead to testing support at 1.2470.
• Today’s trading range is likely between 1.2500 support and 1.2660 resistance, with a bullish trend expected.

The GBPUSD pair is making positive strides, gearing up to continue its anticipated bullish run in the near future, fueled by the momentum from the recently formed double bottom pattern. We’re setting our sights on an impressive target of 1.2680 as the pair climbs.

However, the current Stochastic indicator hints at a little turbulence; we might witness some sideways zigzagging before the pair gets its rocket boosters back on.

Take note though, if the pair slips below 1.2545, it’s like walking on a tightrope as it may dive to test critical support at 1.2470 before making another shot at the moon.

For today’s trading landscape, keep an eagle eye on the 1.2500 support and 1.2660 resistance levels.

GBP/USD Price Chart – Source: Tradingview

GBP/USD – Trade Idea

Entry Price – Buy Above 1.25595

Stop Loss – 1.25241

Take Profit – 1.26264

Risk to Reward – 1: 1.89

Profit & Loss Per Standard Lot = +$669/ -$354

Profit & Loss Per Micro Lot = +$66/ -$35

Daily Price Outlook

• GBP/USD is trading with a bearish bias
• Key support level breached at 1.2390
• Waiting for retracement to consider sell position below 1.2395 or around 1.2375

The GBP/USD currency pair is currently trading with a bearish bias as the US dollar strengthens due to solid fundamentals emerging from the US economy. The pair is currently hovering around the 1.2345 level.

On the four-hour timeframe, GBP/USD has formed three consecutive black candles followed by a bearish engulfing candle, indicating dominance by the British base in the market.

The pair has also breached the key support level at 1.2390, and a close below this level suggests a bearish sentiment. The RSI and MACD indicators are both in the oversold zone, signaling a potential bullish correction.

The price is currently in the middle of the upper range at 1.2395 and the lower range at 1.2300. It is advisable to wait for a retracement in the market and consider taking a sell position below 1.2395 or around 1.2375, with a target around 1.2300 or 1.2275.

GBP/USD Price Chart – Source: Tradingview

GBP/USD - Trade Idea

Entry Price – Sell Below 1.23750

Stop Loss – 1.24000

Take Profit – 1.23000

Risk to Reward – 1 : 3

Profit & Loss Per Standard Lot = +$750/ -$250

Profit & Loss Per Micro Lot = +$75/ -$25