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

Daily Price Outlook

- GBP/USD remains confined within a descending channel.

- Price action shows rejection near the 50-SMA and key trendline.

- A break below $1.33082 sets the stage for a drop to $1.32589.

GBP/USD is navigating a tight descending channel, currently trading below the 50-SMA at $1.33314. Price attempted a recovery above $1.33082 but failed to sustain momentum, producing a rejection candle that hints at renewed bearish pressure.

The structure continues to reflect a lower-high and lower-low sequence—a classic downtrend in motion.

Candlestick analysis reveals an indecisive zone near the $1.33082 mark, with a spinning top followed by a bearish engulfing pattern, signaling hesitation and exhaustion from bulls.

Meanwhile, the Relative Strength Index (RSI) hovers around 45.54, below its average of 44.12, offering little indication of oversold relief or bullish divergence.

A break below $1.33082 reaffirms downside momentum, exposing immediate support at $1.32589 and secondary support at $1.32336.

On the flip side, if bulls breach $1.33364 with strong follow-through, the pair could challenge $1.33801.

However, the bearish channel and 50-SMA crossover overhead suggest that upside attempts are likely to face resistance.

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.33082

Take Profit – 1.32589

Stop Loss – 1.33364

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$493/ -$282

Profit & Loss Per Mini Lot = +$49/ -$28