GBP/USD forecast: Above 1.2600, GBP/USD trades with a slight upward bias.

FUNDAMENTAL OVERVIEW:

In the European trading hours, the GBP/USD is moving up toward 1.2650 despite a muted demand for the USD. One major reason for weakening the USD is the uncertainty around the Fed’s rate-hike trajectory. Aggressive bullish traders should exercise some caution due to the lack of any significant purchasing.

Before staging a technical retreat toward 1.2700 early on Thursday, the GBP/USD exchange rate rose to a weekly high of 1.2747 on Wednesday. The technical picture for the pair indicates a bullish tilt as traders wait for important US data releases.

On Wednesday, the US Dollar’s weakening across the board helped GBP/USD to extend its weekly advance.

The cautious market position early on Thursday helped the USD recoup some of its weekly losses and pushed the GBP/USD pair lower.

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TECHNICAL OVERVIEW:

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 1.2633, suggesting a Sell sentiment.
• EMA 20: The 20-day EMA displays 1.2651, reinforcing a Sell indication.
• EMA 50: With a value of 1.2684, the 50-day EMA aligns with a Sell recommendation.

Simple Moving Average

• SMA 5: The 5-day SMA shows 1.2634, indicating a Sell sentiment.
• SMA 20: The 20-day SMA records 1.2634, supporting a Sell stance.
• SMA 50: The 50-day SMA stands at 1.2679, signifying a Sell indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, displays a reading of 46.15, suggesting a positive signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a Negative condition.

Resistance And Support Levels

• Resistance: The resistance level is identified at 1.2654
• Support: The support level is observed at 1.2589

Summary And Trade Suggestions

Based on the technical analysis, GBP/USD presents a Sell outlook. Traders may consider entering a short position, considering the indicators, moving averages, and oscillators.

Trade Suggestion:

• Entry Point: 1.2561
• Take Profit: 1.2482
• Stop Loss: 1.2623