GBP/USD Daily Price Forecast – 11th February 2025

GBP/USD Daily Price Forecast – 11th February 2025

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Trade Summary:

GBPUSD
Buy Stop @ 1.2369
TP @ 1.24088
SL @ 1.23409

Trade Setup Overview

• Instrument: GBP/USD (H4 timeframe)

• Trade Type: Buy Stop

• Entry Level: 1.23698

• Stop Loss (SL): 1.23409

• Take Profit (TP): 1.24088

Technical Analysis

• Key Levels:

  • Support Level: The price has shown strong support near the 1.23500 level, as evidenced by previous price rejections. The stop loss is placed slightly below this level at 1.23409 to account for potential false breakouts.

  • Resistance Level: The 1.23700 level is a significant resistance zone, and the buy stop order at 1.23698 ensures entry only if the price breaks above this level, confirming bullish momentum.

  • Take Profit Level: The TP is set at 1.24088, slightly below the next resistance level, ensuring a realistic and achievable target.

• Trend Analysis:

  • The price is trading above the 50-period moving average (green line), which is acting as dynamic support. This indicates a bullish trend, and the trade aligns with the prevailing market direction.

  • The recent pullback to the moving average suggests a potential continuation of the upward trend.

• Price Action:

  • The price is consolidating near the 1.23600 level, forming a potential bullish continuation pattern. The buy stop order ensures entry only if the price breaks above this consolidation zone, confirming the continuation of the uptrend.

Momentum Confirmation

• The momentum indicator shows a value of -0.00072400, indicating that bearish pressure is weakening. This aligns with the potential for a bullish breakout.

• The chart notes confirm that momentum supports the trade, awaiting candlestick confirmation for execution.

Risk-Reward Ratio

• Stop Loss (SL): Placed at 1.23409, below the recent support level and the 1.23500 round number. This ensures protection against false breakouts while allowing the trade room to breathe.

• Take Profit (TP): Set at 1.24088, slightly below the next resistance level. This level aligns with the next logical resistance zone, providing a realistic target.

• Risk-Reward Ratio:

  • Risk: 0.00289 (1.23698 – 1.23409)

  • Reward: 0.00390 (1.24088 – 1.23698)

  • Risk-Reward Ratio: ~1:1.35. This is a favorable ratio, as the reward outweighs the risk.

Candlestick Confirmation

• The trade setup is waiting for a bullish candlestick breakout above the 1.23698 level. This ensures that the trade is executed only when there is clear evidence of buying pressure.

Psychological and Round Numbers

• The levels chosen (1.23500, 1.23700, and 1.24000) are psychological round numbers, which often act as key support and resistance zones in forex trading. These levels are likely to attract significant market activity, increasing the probability of the trade’s success.

Conclusion

This trade is justified based on the confluence of technical analysis, momentum confirmation, and logical risk-reward management. The buy stop order ensures entry only if the price breaks above the consolidation zone, confirming bullish momentum. The SL and TP levels are well-placed to protect against losses and capture potential gains, making this a high-probability trade setup.

Recommended Lot Size

Trading is all about statistics.

While we can experience winning streaks, we can also suffer from losing streaks.

As such, we should always size each trade to withstand losing streaks (if any).

It’s widely recommended that you should not risk more than 2% of your capital for each trade.

We believe it’s easier to control your lot size by limiting your lot sizing to 0.01 for every $500 in your account.

So if you have $5000, then risk no more than 0.10 lot size per trade.

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If you spot a mistake especially when it comes to the price, please use common sense and check the chart.

We wish you good luck and good profit for this trade idea.

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