Early in the American session, the GBP/USD pair is trading above the 21 SMA and around the 8/8 Murray. We can see that the pound is trying to recover. If GBP/USD breaks sharply the downtrend channel, we could expect a bullish acceleration, so the price could reach +1/8 Murray located at 1.2817 and could even reach the second weekly resistance of around 1.2850.
In case the British pound consolidates below 1.2695 (8/8 Murray) and falls below 1.2678, we could expect a technical correction and GBP/USD could reach the 200 EMA located at 1.2567.
The British pound is showing signs of exhaustion, so we could wait for an opportunity to sell in case it falls below 1.2680. The key would be to sell below 1.2678 and GBP/USD could even reach the psychological level of 1.25.
The market sentiment report shows that there are 52.58% of traders who are selling the British pound. This statistic could mean sideways trading for the pound. For now, the trend is not defined and we could expect an upward move towards 1.2740 or a fall towards 1.2567.
The eagle indicator is touching a horizontal line which represents strong bearish pressure. If the instrument oscillates below this level, we could expect a bearish acceleration in GBP/USD in the coming days.
