Early in the American session, the British pound (GBP/USD) is trading around 1.2463 above the 6/8 Murray and around the 21 SMA and 200 EMA.
On the 4-hour chart, we can see that the British pound is trading within a downtrend channel. It is likely that if it fails to consolidate above 1.2472, we could expect a continuation of the bearish move and GBP/USD could reach 5/8 Murray at 1.2329.
Given that the 1.2470 zone has become a strong resistance that coincides with the top of the downtrend channel, this could exert strong pressure and the pound could resume its bearish cycle and could fall towards 1.2391 and 1.2329.
Therefore, if we see that the British pound breaks 1.2472 and consolidates above this level on the 4-hour chart, it could be seen as an opportunity to buy with targets at 7/8 Murray located at 1.2573.
On the contrary, in the event that the British pound falls below 6/8 Murray located at 1.2445, GBP/USD is expected to continue the decline until it reaches the psychological level of 1.20.
