The GBPUSD pair is showing signs of weakness after facing pressure at the upper boundary of the Bollinger Bands, indicating that the price is in a dynamic resistance zone. This reaction often serves as an early signal of a reversal or correction, especially when supported by a prevailing bearish structure. With the downtrend still unbroken, the likelihood of further declines in GBPUSD intensifies, particularly if the price fails to break through the key resistance levels and subsequently dips below the middle line of the Bollinger Bands.
Additionally, it is essential to observe other technical indicators to confirm potential further weakness. Should GBPUSD start to display bearish divergence or if momentum indicators like RSI and MACD suggest increasing selling pressure, the possibility of a downturn could become more apparent.
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Currently, the Stochastic indicator is sharply retreating from overbought conditions on the 15-minute chart for GBPUSD, signaling that the upward momentum is beginning to weaken. When the Stochastic indicator indicates overbought levels, the chances of a reversal or downward correction increase significantly. This suggests that GBPUSD is at risk of experiencing a decline in the near future. If selling pressure enters the market, this currency pair could trend down towards the next support level of 1.28455.
Technical Reference: sell below 1.29665
Potential Stop Loss 1: 1.29440
Potential Stop Loss 2: 1.29665
Potential Take Profit 1: 1.28670
Potential Take Profit 2: 1.28455
