The British pound is trading around 1.3568 with strong upward momentum, having broken above the 7/8 Murray level, and is even expected to continue rising in the coming days to reach the 8/8 Murray level around 1.3680.
According to the H4 chart, the British pound is struggling to continue rising in the coming hours, hence consolidation around the 7/8 Murray level is likely. Additionally, we could expect a technical correction toward the 21 SMA at 1.3483 or toward the lower band of the uptrend channel formed since early April.
If the British pound consolidates below 1.3585, this could be seen as a signal to sell in the coming hours, with targets at the 7/8 Murray level around 1.3550 and at the 21 SMA around 1.3483.
The Eagle indicator has reached overbought levels and is giving a negative signal, so we should be cautious with buy positions.
A trading strategy could be to sell from current price levels while waiting for the overbought pressure to ease, and then follow the uptrend through opening buy positions as long as the price remains within the uptrend channel.
