The GBPUSD pair is showing a clearer direction shift after enduring significant pressure within a prolonged bearish channel. The rebound from this week’s low serves as an early indicator that selling pressure is starting to wane, alongside the price’s ability to maintain levels near a crucial resistance area on the hourly chart. From a technical perspective, the breakout above the Moving Average (MA) line and the formation of an upward Zigzag pattern suggest that a potential new bullish trend is beginning to take shape. This signifies that buyers are gradually becoming more active and are reclaiming market control from sellers.
Additional support comes from other technical indicators, including a rising MA and the MACD positioned in positive territory. The combination of these two signals indicates that buying momentum is beginning to stabilize, hinting at the possibility of further strengthening in the near future. As long as the price remains above the MA crossover area and does not breach the weekly support level, the upward trend is likely to continue with stronger bullish direction. This shift also reiterates that market sentiment is transitioning from caution to confidence regarding the potential for more substantial gains during the US session tonight.
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Meanwhile, on the 30-minute chart, GBPUSD is reinforcing trend transition signals as the price successfully breaks through the resistance level of the declining channel. This breakout is accompanied by price movements above the Bollinger Bands (BB) and a sharply rising MA, emphasizing that buying pressure is becoming more dominant. With support from a combination of technical signals such as MA, MACD, and a harmonious Zigzag pattern indicating bullish direction, the outlook for GBPUSD to advance towards the next resistance area around 1.31845 remains promising, especially if buying momentum is maintained through the end of tonight’s trading session.
Technical Reference: buy as long as it stays above 1.31300
Potential Take Profit 1: 1.32100
Potential Take Profit 2: 1.32285
Potential Stop Loss 1: 1.31495
Potential Stop Loss 2: 1.31300
