The GBPUSD currency pair shows signs of a downturn after successfully breaching the bullish channel that previously supported price increases. This breaklow indicates the potential for an initial reversal that may lead to lower prices.
Technical analysis reveals that following the breach of the lower boundary of the bullish channel, GBPUSD experienced a pullback, suggesting that the bullish momentum is waning. In addition, the Stochastic indicator is generating bearish signals, further bolstering the prediction of a decline. When Stochastic rises into the overbought zone and begins to trend downward, it often indicates that a price correction is imminent.
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In line with the analysis of the one-hour chart above, on the 15-minute chart, GBPUSD also presents bearish opportunities as the CCI Stochastic indicator suggests a Strong Bearish condition, signaling downward momentum. GBPUSD is positioned to potentially drop further to the support level of 1.25200.
Technical Reference: sell below 1.26370
Potential Stop Loss 1: 1.26185
Potential Stop Loss 2: 1.26370
Potential Take Profit 1: 1.25375
Potential Take Profit 2: 1.25200
