The currency pair GBPUSD is at a pivotal point after forming a double top pattern, which is often indicative of a reversal from an upward trend to a downward one. After failing to break through the resistance established at the second peak, the price has started to decline, suggesting that the bullish trend may have concluded. Furthermore, with the Stochastic indicator beginning to drop from the overbought zone, selling pressure is becoming more evident, intensifying concerns that GBPUSD could face a deeper correction in the near future.
Should the price continue to decrease and breach the neckline of the double top pattern, further declines could occur, testing lower key support levels. Market participants are advised to monitor additional confirmations from technical indicators and price action that may enhance the likelihood of this weakening.
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In the 15-minute time frame, GBPUSD experienced a sharp rise but is now beginning to show signs of trend exhaustion. The Stochastic indicator indicates an overbought condition, often heralding a potential price correction in the short term. As the buying momentum starts to wane, this currency pair risks weakening towards the nearest support level around 1.31080.
Technical Reference: sell while below 1.32335
Potential Stop Loss 1: 1.32050
Potential Stop Loss 2: 1.32335
Potential Take Profit 1: 1.31315
Potential Take Profit 2: 1.31080
