The GBPUSD pair may continue its downward trend following the confirmation of a bearish signal from Divergence and Bollinger Bands indicators. The price movement indicates that even though there was a temporary increase, indicators such as RSI and MACD are forming lower peaks, which is a sign of bearish divergence. This condition suggests that buying momentum is weakening, creating a possibility for a downward reversal.
Additional confirmation is provided by the widening of the Bollinger Bands, which often indicates high volatility and the potential for significant price movements. If the price breaks through the nearest support, the selling pressure could intensify, pushing GBPUSD to lower levels.
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The GBPUSD is likely to weaken further after the formation of a Triple Top pattern on the 15-minute chart, which is acknowledged as a bearish reversal pattern. This pattern features three price peaks that fail to surpass the same resistance level, indicating increasing selling pressure. The validity of a decline will be reinforced if the price successfully breaks the support at the base of the pattern. If this scenario unfolds, GBPUSD could decline further with a target drop towards the support level of 1.28750.
Technical Reference: sell while below 1.29775
Potential Stop Loss 1: 1.29625
Potential Stop Loss 2: 1.29775
Potential Take Profit 1: 1.28920
Potential Take Profit 2: 1.28750
