The British pound (GBP/USD) is trading around 1.3231, consolidating above the 21 SMA. Since September 23, the price has remained in this range, fluctuating up and down.
Around the 0/8 Murray level within this zone, the British pound has reached a low of 1.3183 on two occasions. That level has acted as strong support, giving the British pound an opportunity to resume its rise.
Technically, the British pound is in a strong support area, and we expect the upward trend to continue over the next few days toward the 200 EMA near 1.3336.
At the same time, consolidation within the range 1.3305–1.3183 remains likely.
If the pound revisits the 2/8 Murray zone, that area could be viewed as a selling zone. Conversely, a break above the 0/8 Murray level will support additional buying.
The Eagle indicator has reached overbought levels, so caution is warranted: the upward momentum appears to be fizzling out, and the British pound may attempt to break through the strong support level of 1.3183 in the coming days.
If a strong upward move pushes the price toward the 2/8 Murray zone or the 1.33 36 zone while the Eagle indicator remains in overbought territory, that could present an opportunity to consider short positions.
