Early in the American session, GBP/USD is trading around 1.2409 above the 21 SMA and below the 200 EMA. We can see a bearish bias but could find support at 1.2375 - 1.2360.
During the European session, the British pound found strong rejection around 1.2436. This level coincides with the 200 EMA. Therefore, while GBP/USD is trading below this zone, the instrument could come under strong bearish pressure and it could reach 5/8 Murray at 1.2329.
According to the Fibonacci indicator, the 61.8% level is located around 1.2482. This level could offer a good opportunity to buy around 1.2360 and could also be seen as an entry to sell if the British pound consolidates below the psychological level of 1.25.
On April 14, the British pound left a gap around 1.2468. In the next few hours, GBP/USD is expected to rebound and can cover this gap, which will give us the advantage to buy in case it falls to support levels of 1.2375 or 1.2360.
In the 1-hour chart, we can see the formation of a falling wedge. A bounce around 1.2375 or 1.2360 will likely be considered a good point to buy because this level represents the bottom of the channel of this pattern.
On April 17, the Eagle indicator reached the extremely oversold zone. Therefore, any technical bounce around 1.2360 could be seen as a signal to buy with targets at 1.2436 (200 EMA) and 1.2480 (61.8%).
