The GBPUSD is experiencing downward pressure after reaching the upper boundary of the Bollinger Bands, a region that often acts as a dynamic resistance zone. Coupled with the Stochastic indicator residing in the overbought territory, the likelihood of a price correction or decline is significantly increasing.
When prices hit the upper limit of the Bollinger Bands, it typically indicates that the currency pair has undergone substantial movement and is in an overbought state. The failure of the price to breach this upper level signals a weakening bullish momentum, suggesting a potential reversal downward.
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In line with the hour chart analysis mentioned, on the 15-minute chart, GBPUSD also presents a downward opportunity as the CCI falls within the overbought area, indicating further declining momentum. The GBPUSD has the potential to drop to the support level of 1.21615.
Technical Reference: sell while below 1.22530
Potential Stop Loss 1: 1.22385
Potential Stop Loss 2: 1.22530
Potential Take Profit 1: 1.21770
Potential Take Profit 2: 1.21615
