Early in the American session, the GBP/USD pair is trading around 1.2106. It is bouncing after reaching the 21 SMA and the strong support at 3/8 Murray (1.2085).
According to the 4-hour chart, we can see that the pound is trading within a bullish channel which has been formed since February 6th. In case the British pound consolidates above the pivot point at 1.2121 or above 1.2085, we could expect it to extend its strength and it could reach the 200 EMA located at 1.2181.
On the other hand, a sharp bounce above the 21 SMA (1.2083) could give us the opportunity to buy as this level coincides with the bottom of the uptrend channel.
In case there is a sharp break of the uptrend channel and GBP/USD consolidates below 1.2075, we could expect it to fall in the next few days towards 2/8 Murray located 1.1962 or towards the psychological level of 1.20.
Our trading plan is to buy above 1.2121 or wait for a bounce at 1.2085 - 1.2080. (3/8-21 SMA). The eagle indicator is giving a positive signal which supports our bullish strategy
