The British pound (GBP/USD) is trading around 1.2854, bouncing back after forming a double bottom pattern, which means that there could be a technical bounce in the next few days only if the pair consolidates above 1.2860.
If the pound breaks the secondary downtrend channel, we could expect an upward acceleration and GBP/USD could reach the 200 EMA located at 1.2902 and even 6/8 Murray located at 1.2963.
Our outlook could be positive as we believe that the GBP/USD pair is showing signs of exhaustion. So, the bullish cycle is likely to resume in the coming days.
In the meantime, we could look for opportunities to buy above the 21 SMA with the target at the psychological level of 1.30.
If the British pound continues to fall, the double bottom pattern would be invalidated and we could expect GBP/USD to reach the Murray 5/8 at 1.2817.
