Early in the American session, the British pound reached a low of 1.2159, which coincides with the low of May 13. We can see the formation of a double bottom that could be a sign of a technical rebound in the coming days.
Last week, the pound strongly broke the downward trend channel formed on May 24. This caused a fall towards May lows due to the uncertainty that the Fed could increase its interest rate by 0.75% in its next meeting on June, 15.
The eagle indicator reached the oversold zone on the 4-hour chart. If the price tests the low of 1.2150, there is likely to be a technical bounce in the next few hours above this level and it may hit 0/8 Murray at 1.22 07 and could even hit 1/8 Murray at 1.2329.
Our trading plan for the next few hours is to buy the British pound above 1.2150 in anticipation of a technical correction, which is likely to occur in the next few hours. The eagle indicator supports our bullish strategy.
