The GBPUSD pair has indicated a potential reversal after successfully breaking out of the recent bearish channel that had contained price movements over the last few sessions. Moreover, the Stochastic indicator in the oversold zone strengthens the likelihood of a near-term rebound.
On the daily chart, this breakout signifies that bearish pressure is beginning to diminish. The Stochastic oscillator is also signaling bullish momentum with a crossover occurring in the oversold area, which is often viewed as a reversal opportunity towards an upward trend.
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On the 15-minute chart shown above, GBPUSD continues to present upward potential since the CCI is currently in an oversold condition, enhancing the chances for an increase. If the scenario unfolds as expected, GBPUSD could make its way to the resistance level of 1.22685.
Technical Reference: buy as long as it stays above 1.21695
Potential Take Profit 1: 1.22475
Potential Take Profit 2: 1.22685
Potential Stop Loss 1: 1.21900
Potential Stop Loss 2: 1.21695
