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

November 29, 2023 04:18 PM AEDT | By Invezz

GBP/USD forecast: anticipating a decline as price nears key resistance — Image source: Invezz

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

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.