The GBPUSD currency pair is showing signs of weakness after facing resistance at the upper boundary of the Bollinger Bands, indicating that the price is in a dynamic resistance zone. Such reactions often serve as preliminary signals of a potential reversal or correction, especially when they are backed by a prevailing bearish structure. With the downward trend remaining intact, the chances of a drop in GBPUSD are increasing, particularly if the price fails to break through key resistance levels and retreats below the middle line of the Bollinger Bands.
Additionally, it’s important to monitor other technical indicators to confirm any further weakening. Should GBPUSD begin to display bearish divergence or if momentum indicators such as the RSI and MACD indicate rising selling pressure, the likelihood of a decline could become more apparent.
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Currently, the Stochastic indicator is in an overbought condition on the 15-minute chart for GBPUSD, signaling that the upward momentum is beginning to lose its strength. When the Stochastic reaches overbought levels, the potential for a reversal or downward correction increases significantly. This suggests that GBPUSD is at risk of experiencing a decline in the near future. If selling pressure starts to enter the market, this currency pair could move downward toward the next support level at 1.28675.
Technical Reference: sell below 1.29875
Potential Stop Loss 1: 1.29685
Potential Stop Loss 2: 1.29875
Potential Take Profit 1: 1.28930
Potential Take Profit 2: 1.28670
