The British pound is trading around 1.3370 within the uptrend channel that has formed since October 20 and is rebounding above the 200-period exponential moving average and the 3/8 Murray line, after having reached the lower band of the uptrend channel around 1.3338.
If the British pound continues to consolidate above the uptrend channel and the 3/8 Murray level in the coming hours, the outlook could remain positive, and GBP/USD could reach the 4/8 Murray level, around 1.3427, in the coming days.
A decisive break above the Murray 4/8 level could support a continuation of the pound's upward movement, with the potential to reach the Murray 5/8 level, around 1.3488, and ultimately the psychological level of 1.35.
If the British pound retests the lower band of the uptrend channel in the coming hours and consolidates above 1.3338, this pullback could be viewed as an opportunity to open long positions, anticipating that the GBP/USD pair will reach the 21-day simple moving average (SMA), around 1.3432, in the coming days.
Conversely, a sharp break below the uptrend channel and consolidation below the 200-period exponential moving average (EMA) could be interpreted as a negative signal, and the instrument could reach the Murray 2/8 level, around 1.33305, and ultimately the Murray 1/8 level, around 1.3244.
The Eagle indicator is showing a positive signal, and we expect the British pound to continue rising in the coming days until it reaches the psychological level of 1.35.
