Early in the American session, the British pound was trading above the 21 SMA located at 1.1803.
Traders will be waiting for a message from the Fed Chairman, Jerome Powell, in his appearance on Friday at the Jackson Hole Symposium. In this case, the GBP/USD pair could have limited movements between 1.1800 - 1.1870
Powell's comments will be scrutinized for clues about the possibility of a 0.75% rate hike at the September meeting.
This, in turn, will play a key role in the price of the US dollar and provide a further directional boost to the GBP/USD pair.
If the comments are disappointing, the British pound could regain strength and could quickly reach the 2/8 Murray zone at 1.1962. The price may even reach the psychological level of 1.20.
The 4-hour chart is preparing for a bullish scenario due to the fact that the quote is located above the SMA 21 (1.18). The eagle indicator is showing a positive signal after reaching the extreme oversold zone on August 22.
On the chart, we can see the formation of a pin bar candlestick formed on August 23, which is a bullish signal. If this tendency prevails, GBP will continue to trade above the low of 1.1716 (0/8 Murray).
This signal could be an opportunity to buy the pair if it trades above the 21 SMA with targets on the top of the downtrend channel around 1.1940 and could even hit the 2/8 Murray level at 1.1962.
Our trading plan for the next few hours is to buy above 1.1803 with targets at 1.1840 (1/8) and 1.1938. The eagle indicator is showing a positive signal which favors our bullish strategy.
