GBPUSD Drops to Lowest Level in 7 Months, Pressure Remains High

The GBPUSD currency pair has been on a downward trend since the 20-period Moving Average (MA) crossed below the 50-period MA on the 1-hour chart. It has reached its lowest point in over seven months.

The Stochastic indicator on the daily chart has retraced from the overbought territory, indicating that the potential for further declines remains significant.

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On the 15-minute chart, the Stochastic appears to be forming a Bearish Divergence pattern, increasing the likelihood of further declines. Strong resistance is seen around the 1.25600 mark; as long as it stays below this level, GBPUSD is poised to drop to 1.24750 before targeting 1.24400.

Technical reference: sell below 1.25600
Potential Take Profit 1: 1.24750
Potential Take Profit 2: 1.24400
Potential Stop Loss 1: 1.25600
Potential Stop Loss 2: 1.26000