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GBP/USD forecast: anticipating a decline as price nears key resistance

By: Invezz

November 29, 2023 at 00:18 AM EST

GBP/USD trading strategy

Buy/sell asset: Sell GBP/USD
Entry price: 1.27590
Stop loss: 1.28950
Leverage: 1x
Take profit 1: 1.2600
Take profit 2: 1.2400
Take profit 3: 1.22090
Timeframe: 1-2 weeks
Maximum profit: 4.31%
Maximum loss: 1.06%

GBP/USD chart and technical analysis

GBP/USD has been in a bullish trend since last month, however, the price is now approaching a major daily resistance level at 1.27590 from where it will possibly make some correction to the downside.

I am expecting the price will drop from this level as this is a strong resistance level and the overall daily trend is still slightly bearish.

The price will possibly drop to the 1.22089 support level in the coming days. Price will possibly make another small push towards the upside and will retest the 1.27590 resistance level which is our sell entry price for this trade.

GBP/USD fundamental analysis

Fundamentally, the US dollar has been dropping which is pushing the price of GBP/USD upward. However, this will soon reverse as the dollar index is also approaching a major support level.

Moreover, the Initial jobless data will be published tomorrow and if the data turns out positive the price of GBP/USD will drop and if it turns out negative the price of GBP/USD will go up.

British pound to US dollar trade idea takeaways

GBP/USD is likely to drop to the 1.22090 support level in the coming days.
The price will possibly reach the 1.27590 resistance level before the drop.
Multiple take-profit levels have been added to secure profit along the way.
The risk-to-reward ratio on this trade is 1:4.
The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
Good luck!

The post GBP/USD forecast: anticipating a decline as price nears key resistance appeared first on Invezz

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