GBP/USD is trading sideways and is now trading around 1.2143. The December inflation data in the US could significantly influence the valuation of the US dollar index and move the British pound out of its par range zone.
Currently, the British pound is trading around the 21 SMA and below the strong resistance of 6/8 Murray. In case the pound consolidates below 1.2150, the odds are that GBP/USD could fall towards the 200 EMA located at 1.2043.
On the other hand, in case the pound consolidates above the daily pivot point located at 1.2150, there is a probability of a further rise and the instrument can reach 6/8 Murray at 1.2207. It could even reach the weekly resistance zone around 1.2268.
The strong volatility in the next few hours could trigger strong price moves of the GBP/USD pair and we could expect it to reach the resistance zone of 6/8 Murray. If the currency pair fails to break and consolidate above this level, it will be seen as a signal to sell.
Additionally, should the pound reach the strong resistance zone of 1.2268, it could be seen as an opportunity to sell at this level, with short-term targets at the psychological level of 1.20 or around the 200 EMA at 1.2043.
The eagle indicator is in the positive zone and the British pound is likely to continue its rise but could reach exhaustion levels. So, any bounce will be seen as a signal to sell.
Our trading plan for the next few hours is to buy at current price levels around 1.2143, with targets at 1.2207 and 1.2268. Additionally, in case the pound sterling reaches the 1.22 area, we could expect it to consolidate below this level to sell, with targets at 1.2250 (21 SMA) and 1.2043 (200 EMA).