The GBPUSD currency pair is currently under technical pressure after breaking below the bullish channel on the intraday time frame. This breakout serves as an initial indication of a possible trend reversal from upward to downward, further supported by the formation of Lower High (LH) and Lower Low (LL) patterns. Such price structures reinforce the dominance of sellers in the market and suggest the likelihood of a deeper correction, as long as the price remains below the nearest resistance level, which now represents a crucial barrier to any potential rebounds.
The bearish signals are becoming stronger, backed by the CCI indicator which is declining from the overbought territory, reflecting a waning buying pressure. The downward trajectory of CCI confirms that the market is currently losing momentum to push prices further up. With this alignment of technical signals, the GBPUSD has a chance to continue its decline and test subsequent support areas.
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GBPUSD could weaken in the short term after being capped at the upper limit of the Bollinger Bands indicator on the 15-minute time frame, which often acts as a dynamic resistance zone. Selling pressure is becoming increasingly evident as the CCI indicator declines from the overbought zone, indicating that the bullish momentum is beginning to lose strength. The combination of these two technical signals points towards a potential price correction downward, with the possibility of testing support at 1.34410.
Technical Reference: sell below 1.35455
Potential Stop Loss 1: 1.35240
Potential Stop Loss 2: 1.35455
Potential Take Profit 1: 1.34600
Potential Take Profit 2: 1.34410
