The GBPUSD pair is beginning to show signs of a directional shift after being under pressure within a prolonged bearish channel. The rebound from the weekly low, along with the price’s ability to maintain itself near the resistance area on the 1-hour chart, serves as an early indication that selling pressure is easing. From a technical point of view, the price breaking above the Moving Average (MA) line and the ZigZag pattern forming an upward trend suggests the potential start of a new bullish trend. This situation indicates that buyers are becoming active again and gradually reclaiming market dominance from sellers.
Other technical indicators further support this strengthening potential, as the MA line appears to be rising and the MACD indicator has moved into positive territory. Both signals indicate that buying momentum is steadily increasing. As long as the price is able to hold its position above the MA crossover area without breaching weekly support levels, the opportunity for further strengthening remains wide open. This shift also signifies that market sentiment is beginning to transition from a cautious phase to a more confident outlook regarding the potential for further rises in tonight’s US session.
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On the 15-minute chart, GBPUSD is increasingly reinforcing the signal of a trend transition from bearish to bullish after the price successfully broke through the resistance area of the declining channel. This breakout was accompanied by a breakout above the Bollinger Bands (BB) and a sharply rising MA direction, adding confirmation that buying pressure is intensifying. With the support of this combination of technical signals, the chances for GBPUSD to continue rising and test the next resistance area around 1.31955 remain open, especially if buying momentum is sustained until the close of tonight’s trading.
Technical Reference: buy as long as above 1.30600
Potential Take Profit 1: 1.31715
Potential Take Profit 2: 1.31955
Potential Stop Loss 1: 1.30845
Potential Stop Loss 2: 1.30600
