Early in the American session, the British pound (GBP/USD) is trading around 1.1901, above the 21 SMA and below the strong resistance of 1.1962 (+1/8 Murray).
According to the 4-hour chart, the latest candlesticks show that the pound is showing some exhaustion of the bullish force and a technical correction could follow if GBP/USD breaks and consolidates below 1.1873.
On the other hand, the pound is likely to consolidate below 1.1962-1.1880 in the next few hours. If the price manages to break below the 21 SMA (1.1873), this level could give an opportunity to continue selling with targets at 1.18 and 1.1718 (8/8 Murray). This level coincides with the bottom of the uptrend channel and could offer a technical bounce.
Additionally, a sharp break below the 8/8 Murray and the uptrend channel formed since the beginning of November could mean a change in trend and the pound could fall rapidly towards the psychological level of 1.15 and even towards the area of 7/ 8 Murray located at 1.1473.
On the other hand, for the pound to resume its bullish cycle, we should expect a daily close above 1.1970. Above this level, we could expect the pound to reach the psychological level of 1.20 and even +2/8 Murray located at 1.2207.
The eagle indicator is at a turning point. It remains above an uptrend line, which gives us a positive signal. On the contrary, in case the moving average of the indicator breaks this support, we could expect a pound to fall towards the zone of 1.1718 in the coming days.
