The GBPUSD currency pair may continue its downward trajectory as it breaches the lower boundary of the channel and falls below the lower Bollinger Bands. This scenario suggests increasing selling pressure, heightening the likelihood of a bearish trend. When prices move past the lower threshold of the Bollinger Bands, it often indicates significant downward momentum, especially if the price does not revert back into the band area promptly. In this context, traders are advised to be cautious of potential slight corrections before the downward trend resumes towards the next support level.
Furthermore, the Commodity Channel Index (CCI) is currently situated in an extreme bearish zone, revealing an oversold condition with dominant selling intensity. Although oversold conditions can lead to temporary rebounds, as long as prices remain below the channel and the CCI stays in the extreme zone, the chances of further declines remain elevated.
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A bearish trend began to emerge on the 15-minute time frame after prices dipped below the 24-period Moving Average (MA), which is now trending downwards as a dynamic resistance. The MACD indicator reinforces the negative sentiment, with the signal line positioned below the zero level and the histogram indicating declining momentum. This combination suggests that selling pressure could persist, paving the way for GBPUSD to continue its downward trend, testing the support level at 1.28985.
Technical Reference: buy above 1.30195
Potential Take Profit 1: 1.30010
Potential Take Profit 2: 1.30195
Potential Stop Loss 1: 1.29180
Potential Stop Loss 2: 1.28985
