GBP/USD Daily Price Forecast – 2nd June 2025

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Trade Summary:

GBPUSD
Buy Stop @ 1.35418
TP @ 1.35842
SL @ 1.34831

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GBP/USD Daily Price Forecast – 2nd June 2025

GBP/USD Analysis

Chart Overview

The chart provided is a 4-hour (H4) timeframe for GBP/USD, showing key levels and moving averages. The following elements are highlighted:

• Key Levels:

  • Take Profit (TP): 1.35842

  • Buy Stop Entry: 1.35418

  • Stop Loss (SL): 1.34831

• Moving Averages:

  • Yellow Line: Likely a shorter-term moving average (e.g., 50-period).

  • Red Line: Likely a longer-term moving average (e.g., 200-period).

• Price Action:

  • The price is currently consolidating near the Buy Stop level, indicating potential bullish momentum if the price breaks above this level.

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Technical Analysis

• Trend Analysis:

  • The chart shows an overall uptrend, as indicated by higher highs and higher lows.

  • The price is trading above the longer-term moving average (red line), which supports a bullish bias.

• Moving Averages:

  • The shorter-term moving average (yellow line) is above the longer-term moving average (red line), confirming a bullish crossover.

  • This alignment suggests continued upward momentum.

• Support and Resistance:

  • Resistance Levels:

    • 1.35418 (Buy Stop level): A breakout above this level could trigger further buying pressure.

    • 1.35842 (Take Profit level): A key resistance level where profit-taking is expected.

  • Support Levels:

    • 1.34831 (Stop Loss level): A critical support level to protect against downside risk.

• Breakout Potential:

  • A breakout above 1.35418 could lead to a rally toward the TP level at 1.35842.

  • Failure to break above 1.35418 may result in a pullback toward the SL level at 1.34831.

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Trade Setup

• Entry: Buy Stop at 1.35418

• Stop Loss: 1.34831 (to limit downside risk)

• Take Profit: 1.35842 (targeting the next resistance level)

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Risk-Reward Ratio

• Risk: 1.35418 - 1.34831 = 0.00587 (58.7 pips)

• Reward: 1.35842 - 1.35418 = 0.00424 (42.4 pips)

• Risk-Reward Ratio: ~1:0.72 (not ideal; consider adjusting levels for better risk-reward).

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Conclusion

The GBP/USD pair is showing bullish potential, with a breakout above 1.35418 likely to lead to further gains. However, the risk-reward ratio is slightly unfavorable, and traders should monitor price action closely for confirmation of the breakout. Adjusting the TP or SL levels may improve the trade's profitability.

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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