The British pound is trading around 1.33, having reached the lower band of the downtrend channel formed since May 10, and is consolidating above the daily S1 support level, which could support a recovery in the pound sterling.
After breaking below the 200 EMA, the British pound began a sharp decline below 1.35, reaching a low of 1.3280. Since then, we have seen a slight recovery. We believe we could expect consolidation above this zone in the coming days, with a potential buying opportunity.
With a technical bounce above 1.3339 or, should the price reach the 5/8 Murray level around 1.3305, this could be seen as an opportunity to open long positions with targets at the 6/8 Murray level around 1.3427.
The Eagle indicator shows that the British pound has reached oversold levels, so we believe the decline could halt, provided that GBP/USD consolidates above the 5/8 Murray level.
Our trading plan for the coming days is to buy the British pound above 1.3305; any pullback will be seen as a buy signal with targets at 1.3427 and the 200 EMA around 1.3487.
QUICK LINKS
ForexMart is authorized and regulated in various jurisdictions.
(Reg No.23071, IBC 2015) with a registered office at First Floor, SVG Teachers Co-operative Credit Union Limited Uptown Building, Corner of James and Middle Street, Kingstown, Saint Vincent and the Grenadines
Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.
Contact Us 
